Can You Become Financially Free by Investing in Property?


Hi I’m Sunil, and in this episode of Systematic Property we’ll answer the question: Can you actually become financially free through investing in property and real estate? Let’s go find out. So, before we can answer the question, can you become financially free through investing in property and real estate? We need to understand what ‘financial freedom’ actually is. Now, In the traditional sense of the word, it basically means where your assets, the investments you’ve made – businesses, real estate, royalties, whatever else you’ve invested in, the income from those is enough to provide you sustenance, or allow you to live on a month to month basis, so you don’t have to dip into your pocket to pay for your bills. That’s financial freedom. Now, you might be thinking that doesn’t sound very financially free but technically that’s what it is. I should also make a note here that true financial freedom, as mentioned in some books, where you can just sit on the beach and live your life forever more ‘Happy Bunny’ is a myth and doesn’t really ever happen. You’re always going to be involved in something. Even if you build a property portfolio, let’s say, that throws off lots of cash flow and you’re financially free, you still have to keep on top of it, you still have to spend time managing your portfolio or spend time managing the people who are managing your portfolio etc etc. So, that utopian place where you just do nothing and make money is a myth. So, financial freedom in the sense of having your assets bring you income that can support you on a monthly basis, well that definitely does exist and can you achieve that through investing in property? Yes you can, if you focus on cash flow. Of course, financial freedom is all about having money coming in every month or in some cases, let’s say every three months, from some of your investments if they pay every three months, and most investments will pay monthly if they are real estate investments, so the income that’s generated from your portfolio is enough to sustain you. If that has to happen, you have to focus on developing cash flow from property. That means you have to look at the profit you make on a monthly investment from your portfolio or your investments. Now, most investors I see when they look at the property market, they’re looking to make money long term by buying low and selling high and if that’s your strategy then you’re probably not going to become financially free through investing in property. I started to focus on the cashflow part of it when I started investing because I wanted financial freedom, I wanted to quit my job and stop travelling three hours every day down to London to make somebody else money. So, that was my focus and so when I started focusing on the cash flow elements of real estate I had to look for deals that threw off lots of cash flow and when you do that, well of course you can become financially free. So, the answer is yes, you can use real estate or property to become financially free if you focus on the cash flow. Now, the beautiful thing about focusing on cash flow when you’re looking at these types of properties is that it opens up new doors for you. You don’t have to necessarily invest in property i.e. buy the property to make cash flow. When you start looking at the property market you start to spot opportunities where you can make cash flow without having to put any money down or maybe even buy a property. So, looking at property from a cash flow perspective because you want financial freedom is great, there are loads of opportunities out there. So, yes you can become financially free through real estate and property, that’s what I did back in 2002 and it’s been a lot of fun ever since. Thanks for watching, I’m Sunil.

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