New Note

Create a note for yourself from this lesson. Notes allow you to quickly jot down any valuable information you'd like to review later. You can find your notes by clicking on "My Notes" in the profile navigation menu.

Business Development

The "Retire Early & Wealthy" Plan

retire earlyI’m sure you got into real estate investing to provide a long-term retirement plan for you and your family as well as have a nice income each and every month, right?  And I’m sure you didn't quit your job (or plan to quit your job) to be living pay-check to pay-check again. 

But now do you find yourself living from rehab-to-rehab or wholesale deal-to-wholesale deal?   Wondering how you are going to pay next month’s bills if you don’t find another deal?  And being honest with yourself, the idea of retirement feels like a long shot?

You aren't alone.  The majority of real estate investors don’t have a plan.

Well my friends, Jamel has another golden nugget of a lesson here that’s going to help you build your wealth and retire early. In this lesson, Jamel is going to share with you his exact real estate investing business formula for creating long term wealth and income that will allow you to retire in 10 years or less!

{Mogul Elite Members: Download and listen to more from Jamel about this plan. See Power Pack Tools for this lesson}

From Jamel Gibbs, Business Development Adviser…

Yes, You Need a Plan

So many people, when they get into real estate investing, just want to make money, and a lot of it.  They don’t ever really sit down and carve out a plan for making a lot of money and also keeping that money for long term wealth planning. 

Many people say, “I want to retire when I’m 40!”  Or, “I’m going to retire early and live the good life and real estate investing is going to get me there.”

But how many people have a real formula and plan to follow to get them there?

What I’m about to tell you will give you a great action plan for your real estate investing business and your long-term future.  So get ready, roll up your sleeves, grab a piece of paper and pencil and get ready to create your own retire early and wealthy plan!

Here’s My Plan for Long Term Wealth

financial freedomAt the moment I’m doing 5-7 deals a month wholesaling houses, which is a pretty busy wholesaling business.  But my basic plan is to do at least four wholesale deals a month. And from each of those wholesale deals I’ll save every penny I make. 

Keep in mind, I have other sources of income to live off of so I don’t have to take any of the cash I make on these four deals.  If you don’t have another source of income to live off of, and you are going to have to take some of this money for your day-to-day living, then you are going to have to do more deals or you are going to have to have a longer term retirement plan.

I understand for those who are starting off, saving that money is going to be hard, especially if you’re relying on your deals to eat. If this is true for you, then you should at least try to save the money from half your deals – or two out of the minimum four monthly.  But now you are also going to have to double your productivity.

This is My Exact Formula: 

  • I do four wholesale deals, and save all the profits from these four deals.
  • I then apply the profits from these towards a rehab, which I pay all cash for.
  • So as I continue rinsing and repeating this, every 5th deal I’m doing is a rehab, and I really cherry pick those 5th deals. I’m choosing the best houses with the best features and the best resale potential for deal #5. And each one ends up with a pretty nice pay day, which I’m also socking away.
  • After cycling through this and completing 3-4 solid rehabs, I now have a pretty good chunk of change saved up.
  • The “rehab profit pool” I then use to pay all cash for a “keeper” property – a solid rental I’ll keep as residual income and for myself.

Now this is NOT very complicated, as you can see. And think about it: If you can go through this exact cycle and do 3-4 rehabs a year, then you can buy your first rental for all cash within your first year. That’s with no debt!

Let’s say your rental cash flow is $1,000 a month, which is pretty average in a lot of areas.  Now, within ten years you can have 10 of these going which means you’ll have $10K a month and you can retire, depending on the type of lifestyle you want to live.

$10K per month, plus ten houses free and clear as assets is a pretty darn good retirement for most people.

It’s Not About the Math, It’s about the Formula

Understand I actually do 6-7 wholesale flips a month.  I just signed contracts on three properties this past week alone.  So my year is more like 10 properties year. The plan above is a very reasonable, realistic plan to follow for anyone who’s done a few deals.

My ultimate game plan is, once I have 100 properties paid off, I’m going to sell some of them off and get a multi-unit building instead – “one roof instead of multiple roofs.”

But these are just examples and my plan for retirement.  It’s not really about the numbers and the math that I've laid out. It’s really about having a retirement plan, and then coming up with a formula that works for you and your plan.

So let’s just say you have to live off of some of the income from your wholesaling business. Then maybe you’ll have to do more deals each month.  Or maybe your retirement goal of owning 10 houses and making $10K per month in residual income will be pushed out a bit further.  Maybe you want to make more than $10K a month and own more houses.  You’ll have to work backwards with your own numbers.

It also depends on your market, right? If you live in a market where your typical house costs $200K, you are going to have to do a lot more wholesale and rehab deals than a market where you can get a good house for cash for $50K.

But again, it’s not about the math. It’s about crafting your version of this formula to reach your retirement goals and execute your plan.

In essence, the basic formula I use and recommend is:

  • Do a few wholesales, keep all the profits
  • Then pay cash from your wholesale profits for a solid rehab, and keep all the profits
  • Do this 3-4 times, then use your rehab profits to pay all cash for a cash flow rental
  • Retire early and rich

You Gotta Have a Game Plan!

retire somehowA lot of investors just want to make a lot of money and don’t have a plan for retirement, much less how they will support themselves or their family long term.  They imagine loosely that they will eventually graduate to this level in real estate investing and their retirement will take care of itself.  Unfortunately these people will never retire. 

You have to have a game plan.  It’s different from fantasizing about it; it’s an actual game plan.

My first few years in real estate investing I was a 21-23 year old kid bringing in $30K/month, I was blowing money like no tomorrow.

Then I wised up and got married and had kids.  My game plan changed. 

At this point I've made goals and plans so that in five years I can retire.  I’m done, if I choose to be.  And I’m only 31.

Personally, I love the business too much to leave it so I’ll probably do it forever.  But at the end of the day, if I choose to, in the next 5 years, I’m done.

It really is a good game plan for anyone to follow.  And it doesn't require any cash or credit up front, because you are building that as you along with this plan.  But the key is that you have to not need the initial wholesale profits to live off of so you have to do additional deals to pay yourself or have another source of income.

At the end of the day you need a plan and formula to follow in your wholesaling business to reach your retirement goals.

Do It To It! Immediate Action Steps

So, these are some tall marching orders – but not unreasonable.  If you are going to succeed and attain long-term wealth and retire early you have to do the following:

  • Create Your Game Plan – Use mine above as a template if you wish. When do you want to retire and how much do you need to make each month?
  • Work Backwards – If you want to retire in 10 years, how many deals do you need to do in order to retire early through residual income from rental properties you own free and clear? How many wholesales, rehabs and cash flow rentals?
  • Create Your Formula for Success – Sit down and write out your formula and check in regular to be sure you are on track.  Your numbers might vary from Jamel’s but at the end of the day, you have to have your own formula for success.

Is there a topic you'd like to learn more about? Request a Lesson


+ Mark as Learned

Valuable Lesson? Share it:


Request a Lesson

At RealEstateMogul.com, mogul_guarantee.pngwe’re committed to delivering the awesomest, most practical, actionable content to our members … and that a big part of that is getting YOU to tell us what you'd like to learn from us. Since our REI resources are basically endless, we’d love to tailor our upcoming training as much as possible to precisely match what you, our members, really need and want out of us.

jpsig.png Request form