For most of us, retiring at 27 sounds like a dream, and while it may seem unattainable, it’s certainly not impossible, as we learn from today’s guest, Rachel Richards. For Rachel, creating passive income was the key to reaching financial freedom so early in life, and in this episode, she sheds light on how real estate played a key role in achieving this. We learn about her real estate journey so far, the metrics she focuses on, and how she ensures that a property will cash flow to ultimately be a worthwhile investment.
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Although the rental income she makes from properties is now passive, Rachel does not sugar coat the effort it took to get her into this position. She shares the sacrifices that she and her husband had to make to get to where they are. We often think that there are only financial sacrifices needed to achieve financial freedom, but as Rachel reminds us, there are many time trade-offs to be made as well. Along with this, Rachel highlights the importance of income diversification and why you should never be reliant on one income source, how spending money where it matters makes you money, and tips on staying motivated through difficult times. If you need some inspiration on how to get that passive income flowing, this is certainly the episode for you. Be sure to tune in today!
Key Points From This Episode:
- Hear more about Rachel’s journey of creating passive income.
- What prompted Rachel to pursue real estate investing and some key educational resources.
- The three main metrics Rachel focuses on when doing the financial analysis of a property.
- Rachel’s tips on projections and the importance of being conservative with them.
- Common mistakes Rachel sees first-time investors making when projecting expenses.
- Three key factors that enabled Rachel and her husband to buy their first rental property.
- Requirements Rachel looks for to ensure properties cash flows quickly.
- How Rachel and her husband lived frugally and some of the sacrifices they made.
- Defining passive income and the importance of income diversification.
- Why having a stable job does not equate to being financially secure, according to Rachel.
- Rachel’s biggest real estate mistakes and the lessons she learned from them.
- Hear how Rachel stayed motivated through all of the hard times.
- Learn about time-tracking and why it can help with anxiety and feelings of overwhelm.
- A recenst business improvement, the biggest contributor to Rachel’s success, and giving back.
[bctt tweet=”To me, real estate investing is one of the best tools for building long-term wealth. — Rachel Richards” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Rachel Richards
At only 27 years old, former financial advisor Rachel Richards has made a name for herself in the personal finance realm. In 2019, Rachel quit her job and retired, with over $10,000 per month in passive income! She is the bestselling author of Money Honey and Passive Income, Aggressive Retirement. She has been featured on the Penny Hoarder and The New York Times and has been contracted to speak at colleges. Rachel is also a real estate investor with 35 rental units. Her valuable money lessons have helped thousands of millennials work their way out of financial despair. She has successfully done what no one has done before: made the topic of money management fun, entertaining, and simple!
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