What’s YOUR Rat Race Number?
(And why is it important to know?)
Let me ask you a question:
have you thought about your “rat race number”?
The Rat Race Number is the amount of money you would need each month to cover your income and quit your job.
Specifically, it’s the amount of PASSIVE income you would need to cover your most basic living expenses.
If you could have your real estate investments produce THAT much passive income each month, you could quit your job, retire, or do whatever you wanted.
That’s your Rat Race Number, and THAT’S what you’re seeking with real estate investing, am I right?
How many units would you need to control to retire or quit your job?
Let’s assume your Rat Race Number is $5,000 per month in passive income.
And let’s assume you buy just a small 12-unit building.
Assuming each unit produces just $91 in monthly income, that means you would need to control 55 units to quit your job.
Here is how it’s likely to play out once you do your first 12-unit deal:
— Once you close on that deal, you’ll probably already have your second deal under contract, and it’ll probably be between 20 and 30 units (based on many investors’ experiences).
— And you’ll probably do your 3rd deal several months after that, and that deal will be somewhere between 30 and 60 units, as investors keep moving up as they get successes under their belt.
Let’s assume your first deal is a 12-unit, then a 20-unit and then a 30-unit deal. Here is the math:
By this point you control 62 units (all with other people’s money BTW), and your passive income is $5,621 per month.
But equally important is that your NET WORTH increases by $17,087 per month if you consider your fees, appreciation and amortization.
And it all started with that one small deal.
Can you see it?
Michael Blank will make it crystal clear for you at Traction REIA next week.
Works nationwide. Join us from anywhere.
Traction REIA Main Monthly Meeting
TOPIC: “How to Get Started With Apartment Investing Without Experience or Cash”
SPEAKER: Michael Blank
Michael is with us for ONLY 1 APPEARANCE at the main Traction REIA meeting.
Thursday November 19th at 6pm Eastern ONLINE using Zoom.
See you there!
11+ Year Recipient of the National REIA “Honors of Merit”
and the “Award of Excellence”
For Best Real Estate Investor Association!