How close are you to absolute financial freedom? Rob Rowsell talks about how to grow your money and live off of investment income only. Rob has transitioned from a multiple business owner to a multiple family real estate investor. Who better to take advice from? Rob has learned the hard way how to avoid unwise investments and do his due diligence to ensure his income only comes from his properties.
Tasks to Transition to Living Off of Your Investment Income
Rob starts off the clip laying out his current financial situation. He no longer holds a conventional “W-2” job. Therefore, he depends solely on his apartment holdings to generate cash. Reinvesting that cash wisely is his key to maintaining financial freedom. Do you still have a full time day job? You can still take steps to eventually fund your lifestyle solely from investment income. If you dedicate just eight hours per quarter to your investments, you are well on your way.
We talk often about the Vitality Spreadsheet. Examining this document will help you determine the income amounts you need in order to meet basic needs, then live with vitality, and, finally, achieve total financial freedom. You must take time to thoroughly vet potential property investments, while reviewing your numbers with a fine toothed comb. If that sounds like a part time job, that’s because it is! However, performing your due diligence will pay dividends for you and any potential investment partners down the line.
Join Our Community
Do you invest in real estate? Planning on transitioning to living off of that investment income? Then you should consider joining our online discussion group, the ATL ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!
Do you plan to invest in a business or property? Then you MUST fill out your due diligence checklist. This includes population demographics, surrounding businesses, competition, economic conditions, and more. Rob goes DEEP into the weeds in order to discuss all of the research factors you should consider. BEFORE you invest in any kind of business, you must watch this video!
Auto Repair Shop Investing Due Diligence
Rob began by listing off just a few potential businesses that one could invest in. Consider everything from coffee shops to apartment complexes to auto repair shops. All of them have one thing in common. Researching their demographics is key. An average investor may be interested in injecting capital into a business. In that case, they would be wise to do their homework.
Specifically, Rob then expanded on due diligence for aspiring auto repair shop owners. Perhaps you are investigating a vacant property. You wish to build a new repair shop on it. In that case, consider the size of its population. Next, take a look at how many existing automotive shops serve that community. Are you currently considering an underserved region? Or is the area already overserved? Rob calculates that one average sized auto repair shop can serve up to 1,000 households. Is your target city’s population approximately 20,000? Then it could theoretically sustain up to 13 successful shop locations in the area.
Researching Household Income
However, you are not just looking at how many people live near the businesses. You want to know what the average household income is. Aim to plant your business in the middle of a thriving community. That means its citizens average $70,000 or more in annual income. These folks are much more likely to prioritize maintaining their vehicles than other, less fortunate individuals. That may not be a fun statistic to quote, but it is true. We are all trying to make a profit. And we want to do it without fighting a constant uphill battle.
What about investing in existing auto repair franchises? That honest mistake ensures you will get a smaller cut of the pie. All the while, you will work harder in order to fit into someone else’s mold. Investing in a turn key, existing business can still benefit you. If you find this idea appealing, then seek out independently owned auto repair shops.
Due Diligence in Real Estate Investing
Moving on, we discuss the real estate industry. Rob discourages pursuing properties on apartment listing aggregate websites. Many of these sites set off a race to the bottom. When this happens, competition can get fierce. The properties listed on these sites often end up driving down prices. They do this by offering move in specials. Everyone needs a place to live. Discounts like these help a lot of lower income renters. However, you want to invest in higher end, multi-family properties. Those will not be surrounded by stiff competition. They will also give you much larger returns on your investments.
Next, let’s talk about your area’s demographics. Rob lays out an ideal situation. Let’s say the community population is 100,000 people. You will want there to be no less than one hospital nearby. What’s a tip many folks may not consider? Scout a property that is 30 minutes or less away from a major airport. Rob prefers an international one. Are you investing in rental properties in multiple large markets across the country? Then you will want them to be easily accessible to you. Let’s face it: you are busy, and you don’t need to spend your time driving all the way across town to assess an issue with your complex.
Investigating the Area’s Economy
Moreover, you must examine the economy in your chosen area. Job growth should consistently be trending upward. That figure should read a 4-5% minimum, year over year. You will also want a diverse selection of industries throughout the city. Many communities’ economies are based on only one industry. This could be, for instance, a car and truck manufacturing plant. That factory, situated in the town’s industrial zone, may employ half the town. Thousands of small businesses have sprung up around it to serve its employees. How many times have we read headlines about those plants moving overseas, and ruining the area’s entire economy? Now, the plant workers, as well as the other businesses’ employees, are all out of work. If you invest in a shop serving these people, you and your staff are next.
Rob also mentioned the huge hit that the hospitality industry took during the COVID-19 pandemic. If an entire town’s economic hopes are pinned solely on a resort, an event like that will sink it. Every town is a business, and just like with any successful business’ investment strategy, diversifying is key. Remember this when you’re doing your due diligence.
Join the ATL ALL-In Financial Community
Do you currently own multi-family properties? If not, do you wish to own some in the future? Then you should consider joining our online discussion group, the ATL ATL Community! Each month, you will join your fellow investors on a live Zoom roundtable talk. Rob Rowsell will teach you what you must do in order to build wealth in the lucrative real estate industry. It is not nearly as easy as it looks! Property taxes, liens, and legal fees can all be mind numbingly hard to navigate. Having a successful guide in your corner like Rob is a must! So sign up today!
How does a successful real estate investor calculate their blended tax rate? Let Addicted to Life’s Rob Rowsell teach you the secret formula so you won’t pay more taxes than you have to!
Rob Explains Blended Tax Rate For Real Estate Investors
Let’s do the math! Rob lays out a theoretical income amount for the group to consider. On a sample effective annual gross income of $400,000, Rob calculates a blended tax rate of 2%. That may sound small, but it in fact adds up to $8,000.
Jake Garcia asks our host for a clarification. Rob shows his work with a very simple equation. You start with your annual total gross income. Then divided it by all the taxes you paid at the end of the year. When you solve this equation, you will end up with your blended tax rate.
Finally, Rob makes sure to clarify that he does not hate paying taxes to his state and federal governments! Taxes are necessary for the United States to build roads, employ police officers, and provide equipment for the armed forces to defend our freedom.
As any business owner with many investments to look after would tell you, he just does not want to pay more than he actually owes by mistake. That means more cash on hand to invest in his family, his staff, and his eventual retirement goals.
Join Our Community
Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!
The “Diary of an Apartment Investor” podcast, hosted by Brian Briscoe, recently had Rob on as a guest. Rob recounts his experiences working with an SEC Attorney and gives advice to beginning syndicators.
Most of us resist setbacks and struggles, but both are crucial to our growth. In fact, the most successful investors respond to failure with resilience. These investors pick themselves up, dust themselves off, and then take the next step of uncomfortable action toward their dreams of financial freedom.
On this episode of Financial Freedom with Real Estate Investing, Rob joins cohost Garrett Lynch and me to share his journey from homeless addict to successful multifamily investor. He explains why so many aspiring investors don’t succeed, challenging us to develop a strong WHY and leverage visualization to reach our goals. Listen in for Rob’s insight on cultivating the mindset where you need to take action, grow through the challenges, and achieve financial freedom as a multifamily investor!
Rob’s struggle with addiction
Hooked on both meth and crack cocaine
Homeless and unemployable
What inspired Rob’s decision to change
Realized he was on the path to death or prison
Pain to stay the same was greater than the pain to change
How Rob got back into society
Choose new people, places, and things
Willing to take uncomfortable action
Why aspiring investors don’t take action
Biggest hurdle is equal to previous successes
They lack a big enough WHY
How Rob uses visualization to reach his goals
Write out your goals as if they are already accomplished
Read over in order to instill yearning and belief
The traits of a successful entrepreneur
Builds momentum via stacked action
Willing to act despite uncertainty
Grow through catastrophic failure
How Rob used knowledge in order to build momentum
Ziglar taught potential to succeed
Saved so he could buy Carleton Sheets course
How Rob got into real estate
Bought auto repair shops with no money down
Used hard money for first few SFHs
How Rob grew a 1K-unit multifamily portfolio
Start with SFH buy-and-hold strategy
Flip SFHs into small multifamily
Reinvest profits in larger multifamily
About “Financial Freedom with Real Estate Investing” Podcast
The Financial Freedom with Real Estate Investing podcast is all about how you can achieve financial independence and control your time through apartment building investing. Each week, hosts Michael Blank and Garrett Lynch interview experts who share how you can get started with investing in multifamily real estate even if you don’t have previous real estate experience or cash of your own to invest. You’ll hear from experts like Grant Cardone, Robert Kiyosaki, Ken McElroy, Robert Helms, Brandon Turner and Hal Elrod about developing the right mindset and scaling your portfolios. You’ll also hear from dozens of people who share how they have been able to quit their jobs with multifamily real estate. Whether you’re just getting started or want to scale your syndication business, this is the show for you!
Have you ever experienced hardships you thought you would never overcome?
Today’s guest is best selling author of the book, “Addicted to Life – Your 8-Step Formula for Achievement,” Rob Rowsell. Rob’s story is one of hardship, triumph, and inspiration.
Rob struggled with a life of drug addiction, which led him to homelessness. After meeting his future wife, he decided he was “done.” Rob began his extraordinary journey of recovery and entrepreneurial success. This journey has landed him in the Hall of Fame for two different prominent real estate mentorship programs. He is also now a best selling author.
Rob shares his 8 step formula for achievement with us that can apply to any aspect of our lives:
You have got to be done.
Get uncomfortable and then take action.
You must create the wave of momentum.
Prepare now for what’s coming.
You must be open to the unexpected.
You won’t always feel like your winning.
Understand the law of exposure.
You won’t do it alone.
Rob is a huge advocate of coaches in every aspect of his life to continue to build success upon success. Set 1, 3, and 5 year goals and then develop quarterly action plans to pave your path of success. Coaches will not only guide you but also help to hold you accountable. You should always be investing in yourself.
About Prosperity Through Multifamily Real Estate Investing
This podcast is for anyone seeking to learn how to create a lifetime of wealth and financial freedom by investing in multifamily real estate. Whether you are an aspiring syndicator or a passive investor seeking better returns and cash flow from your investments, this show is for you. Cody Laughlin, John Batey, and Brian Alfaro speak to industry experts to discuss all aspects of investing in multifamily real estate. They seek to help all multifamily real estate investors to both improve their education and learn proven strategies to grow their businesses.