Ep 136 – Financial Freedom with Real Estate – The Blueprint to Quitting Your J.O.B with Michael Blank
Nuts and bolts
Michael Black last appeared on the show in episode 32 so if you haven’t already, please do go back and have a listen. Since Michael was last on the show he has done more deals, larger deals and published a book.
Michael grew up doing computer programming and he created his own company in the late 90’s. He found himself in the right place at the right time so was able to IPO his company in March 2000 which put a lot of money in his pocket. In 2004 he read Rich Dad Poor Dad and realized that money wasn’t enough, he needed to create passive income. He quit his job and got into restaurants; all of his friends were doing burger franchises, so he did the same and 8 years later he has lost his fortune. He crawled out of the financial hole by investing in real estate. Once he was investing, he started a blog which then turned into an educational course and then Deal Desk. Michael is the founder of Deal Desk which is a joint venture bringing people deals and they raise the money for the deals and he has completed 1000 units already.
Michael’s new book Financial Freedom Through Real Estate Investing explains his journey to financial freedom by going through all of his mistakes and high points. He shares the blue print that will help anyone quit their day job 2 years after their decision to go into real estate investing. He details and teaches how to do your own deal and instructs about mindset and limiting beliefs around money. Michael covers the law of the first deal in his book, this is that if you do a multifamily deal of any size as your first deal you will be financial free within 3-5 years. The first deal always takes a long time but the second one wioll be quick on it’s heals because the first deal attracts others. The average deal size progressions is 2, 10, 25 and then 50+ but it doesn’t have to be large deals that get you financial freedom, it depends on your situation and if your living expenses are low you could be covered by a number of small unit deals.
Michael also covers the myths about real estate, for example that you need experience, your own money, analysis deals or deal flow analysis. Don’t wait for a better time for deals because the only difference between you and other people is that they are hustling so don’t get put off by 5 rejections in a row. Michael adds that generally you need to get past the first 10 weeks of rejections and then you’ll be in a better position. He also recommends that you trust mentors if they say a deal isn’t worth it, don’t just push through because it’s your first deal and never get emotionally attached and lose sight of the goal.