Follow This Exact Plan To Become Financially Free In 10 Years (Using Real Estate) | Flipping Mastery Weekend Edition

On today's Wholesale Hotline Podcast (Special Saturday Edition), we help you start your weekend right offering tips, news and mindset advice. Show notes -- in these episodes we cover: Tips to level up your wholesaling business. Motivation to keep you going on your real estate journey. The latest industry news to keep you updated. Please give us a rating and let us know how we are doing! ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ ☎️ Welcome to Wholesale Hotline & Flipping Mastery Breakout! ☎️ Jerry Norton went from digging holes for minimum wage in his mid 20's to becoming a millionaire by the age of 30. Today he's the nation's leading expert on flipping houses and has taught thousands of people how to live their dream lifestyle through real estate. **NOTE: To Download any of Jerry's FREE training, tools, or resources… Click on the link provided and enter your email. The download is automatically emailed to you. If you don’t see it, check your junk/spam folder, in case your email provider put it there. If you still don't see it, contact our support at: [email protected] or 888) 958-3028. ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 💲 USE THIS LINK FOR DISCOUNTS AND FREEBIES TO USE IN YOUR BUSINESS: 💲 Make $10,000 Finding Deals:b https://flippingmastery.com/10kpod Get 100% funding for your deals! https://flippingmastery.com/fspod Mentoring Program: https://flippingmastery.com/ftpod FREE 8 Week Training Program: https://flippingmastery.com/8wpod Get Paid $8700 To Find Vacant Lots For Jerry: https://flippingmastery.com/lfpod FREE 30 Day Quickstart Kit https://flippingmastery.com/qkpod FREE Virtual Wholesaling Kit: https://flippingmastery.com/vfpod FREE On-Market Deal Finder Tool: https://flippingmastery.com/dcpod FREE Wholesaler Contracts: https://flippingmastery.com/wcpod FREE Comp Tool: https://flippingmastery.com/compod FREE Funding Kit: https://flippingmastery.com/fkpod FREE Agent Offer Sheet & Scripts: https://flippingmastery.com/aspod FREE Cash Buyer Scripts: https://flippingmastery.com/cbspod FREE Best Selling Wholesaling Ebook: https://flippingmastery.com/ebookpod FREE Best Selling Fix and Flip Ebook: https://flippingmastery.com/ebpod FREE Rehab Checklist: https://flippingmastery.com/rehabpod ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 🔌 PLUG IN & SUBSCRIBE 🔌 SUBSCRIBE: Jerry Norton and Flipping Mastery TV FACEBOOK: http://www. Facebook.com/flippingmastery INSTAGRAM: https://www.instagram.com/flippingmastery/ ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 🤝 #SQUADUP & GET MORE DEALS DONE in the Wholesale Hotline LIVE Facebook group: https://www.facebook.com/groups/759418414582645 🤝 ‼️‼️Pro tip: Make a post with your market & what you need help with‼️‼️

• 0:03Speaker 00

  Hey, it's Jerry Norton. Welcome to the Wholesale Hotline Podcast and the Flipping Mastery Breakout. We want to know how we're doing, so please leave a comment and give us a rating.

• 0:17Speaker 00

  I spent an entire day with a multimillionaire who also happens to be my very first mentor in real estate from 20 years ago. His name is Steve Cook, and Steve has some unconventional ideas about real estate, making money, and building wealth that have profoundly impacted my life and career. Now Steve actually teaches a unique 10-year plan to become financially free just by flipping 10 houses a year and acquiring only 10 rentals. Now I've since coined Steve's strategy, the 10-10-10 method. All that and more, coming up. My older brother Bob is the one who got me into real estate, and he's been a great mentor for me. We've actually partnered and done a lot of deals together over the years. But my very first official mentor, who taught me wholesaling and then later flipping, was Steve

• 1:02Speaker 00

  Cook. Now this was around 20 years ago. Steve has been a full-time real estate investor for over 27 years. During all these years, we've remained friends. We've even done some charity work together in Guatemala. Now today, Steve continues to flip houses. He owns a free and clear portfolio of cash-flowing assets. He lends money. He does one-on-one life coaching. And he's the founder of Life in Error, which teaches entrepreneurs how to use real estate to become financially free and how to live a rich and abundant life. Now Steve is a devout Christian, and he gives the glory to God for his opportunities and for all of his blessings. Okay, now before I break down Steve's method to become financially free that I call the 10-10-10 method, there is a fundamental philosophy that Steve teaches

• 1:45Speaker 00

  that you have to understand. And what I'm about to share goes against all conventional wisdom in real estate, but hear me out and then decide for yourself. Steve believes you should not use debt to acquire real estate, and that you should live 100% debt-free. Steve believes debt in all its forms is slavery. Debt is the enemy to peace and freedom, and I'm not talking only about consumer debt. I'm talking about any and all debt, even debt for your personal home. Now Steve explains this using the following story. The average American can't afford to buy a home, so he goes into the bank and he asks the banker, "Will you put up the money for me to buy this house?" The banker says, "Fill out this paperwork and we'll decide if you'll make a good servant." So he fills out the paperwork and he gives it back to the banker.

• 2:31Speaker 00

  And the banker comes back and says, "Good news. As long as you commit to pay me 35% of your gross income, that's called debt-to-income ratio, we'll give you the money to buy the house. But here's the deal. The bank will actually own your house, not you. You can live there as long as you work for the bank for the next 30 years to pay it off. But there is a catch." So the homeowner says, "What's the catch?" The banker replies, "If for some reason you can't pay back the bank, we're gonna take the house away from you." So he thinks about it a minute and he says, "Well, I really want the house and I don't have the money, so I'll agree to your terms." So he signs up for 30 years of servitude. And that is basically what happens when someone uses debt to finance a house. Steve emphasizes that the average person

• 3:16Speaker 00

  doesn't realize that nearly half of their after-tax take-home pay goes to the bank for the next 30 years. That means the first 20 to 30 hours of the work week goes to pay the bank. Now if you think about it that way, you literally are a slave and the bank is the master. When Steve first explained this to me, I immediately thought of Matthew 6:24. "No one can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other." You cannot serve both God and money. Now, this is an interesting way to think about your personal residence, but Steve believes the same applies to investors who buy assets like rentals. Now, most people in real estate are taught to leverage their assets. That means you borrow as much as you possibly can against the equity.

• 4:01Speaker 00

  Now, Steve agrees that leveraging assets can grow a portfolio quickly, but you are still a slave to the bank. And the problem with leveraged assets is you need a lot more of them to get the same net result as a small, free and clear portfolio. Now, Steve proved this point to me. I met Steve at a small seven-unit mobile home park that he owns free and clear. That one little free and clear park brings Steve around $100,000 in net annual cash flow because he has no debt. Now, never mind depreciation and other benefits. I'm just talking about cash flow. In comparison, using debt to get the same $100,000 annual net cash flow, you would need a mobile home park that is seven times bigger, or around 40 units, again, to get the same annual net cash flow.

• 4:45Speaker 00

  And it doesn't matter if you take over existing debt or create new debt. The lender is the master and the borrower is the slave. Here's the way Steve explains it to help investors grasp the concept. If your goal is money, then by all means, leverage your assets, take on the debt and acquire as many assets as you can. You can get money faster using debt. But if your goal is freedom and lifestyle, go slower and smaller with no debt. That makes a lot of sense to me. Now, if you had to choose between owning a 40-unit mobile home park, leverage with debt, or a seven-unit mobile home park free and clear for the same $100,000 in annual net cash flow, which would you choose? Well, if freedom and lifestyle are the priority, then the answer is simple. Seven free and clear are better than 40 leveraged with debt.

• 5:30Speaker 00

  Now, to illustrate this point, let me tell you about three real estate investors who were buddies that decided to go on vacation together in Europe. The first investor owned 100 units that were leveraged with debt. The second investor owned 50 units that were leveraged with debt. And the third investor owned just 10 units, but he owned them free and clear with no debt. So, they went to Europe together. And the first investor who owned the 100 leveraged units was having a great time. But after one week, he decided He needed to get home and back to work. The second investor who owned 50 leverage units was also having a great time. But after two weeks, he decided he needed to go home and get back to work. The third investor who owned 10 units free and clear stayed a month and was having such a great time

• 6:12Speaker 00

  that he extended his trip another month before going back home. Now, what's the moral of the story? Less is more. Fewer properties that are debt-free create real freedom. Now, you might be wondering, "Sounds good, Jerry, if you don't use leverage, but how do you acquire assets that are free and clear?" Great question. Well, first of all, it just won't happen by itself. For sure, you need a very intentional plan. To answer that question, let's go back to something that I teach often, that I first learned from my friend, Chris Rude, and that is a concept of three different speeds of money. You have fast money, which is active income that you earn in about 30 days or so. In real estate, this would be wholesaling.

• 6:53Speaker 00

  Then you have medium-speed money, which is active income that takes four to six months to earn. So this would be flipping in real estate. And then you have slow money, which is passive income from cash-flowing assets like lending or rentals. Okay, so what Steve teaches is you need to create fast and medium-speed money from wholesaling and flipping, then use that money to fund your slow-speed deals. So here's what this might look like. If you wholesaled and flipped houses and you saved enough of that cash to buy one rental per year, free and clear, that made $1,500 a month in cash flow, in 10 years, you would have $180,000 in annual cash flow. That's all it takes, one free and clear property a year for 10 years. And if you live debt-free and your living expenses are reasonable,

• 7:38Speaker 00

  you could be financially free for the rest of your life. So essentially, your active income from wholesaling and flipping feeds your passive income. Now, that should be the goal. Steve says all the time, "You can make a lot of money from flipping, but you will never build wealth from flipping alone. You have to have a wealth-building plan." Okay, now what about covering your living expenses in the meantime? Steve has a plan for that too. Here's what you do. Sit down and figure out the bare minimum that you need to live on monthly to pay your bills. Let's say it's $5,000 a month, or $60,000 a year. Keep your day job and hustle deals, wholesaling and flipping, until you have $60,000 set aside to replace your annual income.

• 8:19Speaker 00

  Put that money into a dedicated account and only draw from it $5,000 per month for the next year. Now you can quit the job and go out the business full-time. And no matter how much money you make or don't make, you have your paycheck already covered for the next year. All the money the business makes stays in the business and you don't have to worry about how you're going to pay your living expenses. The following year, give yourself a raise if you want, but do the same thing. Start the year with your salary already predetermined and set aside so you don't have to worry about it for the whole year. Be disciplined and keep your budget no matter how much money you make that year. My oldest son Jared and his wife Britta do something very similar. Jared works in the family business and he runs my hotel in Puerto Rico. And him and Britta live entirely on Jared's income

• 9:05Speaker 00

  and Britta's income goes straight into their savings and investing pool. When I got started 20 years ago, I followed Steve's advice about creating your annual salary upfront. My day job paid me about $25,000 a year. So I part-time wholesaled until I did enough deals to set aside $25,000. It took me about a year side hustling nights and weekends. I mean, it was brutal. But once I had one year of pay set aside, I quit my job and I did wholesaling full-time. My first month full-time, I did five wholesale deals and made $52,000. But like Steve taught me, I still lived on my $25,000 a year salary that I had set aside. Now let's talk about how to put this plan into action. All you need to do is flip 10 houses a year and in 10 years, you are financially free.

• 9:50Speaker 00

  Let's break it down. If you do 10 flips a year and the average net profit per flip is $45,000, that's $450,000 in a year. From that $450,000, you pay your salary, taxes, 10% to God, and you should have enough to buy one rental free and clear. In 10 years, you have 10 rentals pulling And fifteen hundred dollars a month or a hundred and eighty thousand a year in passive income. And you are set for life. That's why I call it the ten, ten, ten method. Ten years to flip ten houses to acquire ten rentals and you are set. It's not sexy, but it's a proven plan that anyone can do. Now let's break it down further. If the average flip takes four months end to end. Then you need basically three flips going on at a time to do ten in a year.

• 10:33Speaker 00

  So every four month cycle, you do three deals. And if you can get your average profit up to let's say seventy five thousand per deal. You only need six flips a year, which is only two at a time. Doing two to three flips at a time is completely manageable. Now this is if you're just doing flips. If you're also wholesaling, then you could do a lot less flips. Remember, the goal with flipping is to create excess cash to buy one free and clear rental property per year. Now, if what I share with you on this video resonates, leave a comment and say, Steve Cook, you are a flipping genius. But seriously, never lose sight of the end game. It's to create wealth and freedom, not just to make money. But you have to get started. Step one is to side hustle deals until you've earned enough to replace your annual income, then go at it full time.

• 11:19Speaker 00

  Hey, thanks for listening to this podcast. To get more free tips, check out my YouTube channel. Just search Flipping Mastery TV on YouTube, where I have over a thousand videos teaching you how to make more money with real estate. On my channel, I also give away free stuff like my Quick Start Kit with everything you need to flip your first house in the next thirty days. Or my deal finding software called Data Cruncher, which finds discounted houses in any zip code in a matter of seconds. You can get those for free at myquickstartkit.com and mydatacrusher.com.