We figured that we’d need a lot of rental properties to get us financially free. Somewhere around fifty, actually!
We wanted cash flow to live off …cash flow is the stream of money coming in from the rentals. Our initial portfolio gave good positive income but it wasn’t enough, and the market was too hot to purchase any more real estate in the meantime.
So, we decided that it’d be better to buy a business. Finding a good cash flow positive business is not easy as everyone wants one! We searched for one of these gems for two years before deciding that we would have to build one ourselves.
So, to cut a long story short, we found some business partners with experience in the campervan industry and together we built a motorhome hire company from the wheels up! It was a great exercise to build, operate and sell a business. We learnt a lot of valuable lessons, it was a nice little earner and I found I had a flair for marketing to boot!
OK, we still weren’t financially free and the income was far from passive (I processed hundreds of quotes!). If we had grown the company it had the potential to produce passive income, but we needed a huge amount of capital for that.
In general, business can be a good way to make money which you can then invest in real estate. Seeing as we figured we would need fifty houses to get our passive income up, this was going to take some doing. Our goal of financial freedom seemed as elusive as ever…