In this episode I sit down with Ben Everingham and we explore the Financial Freedom Foundation strategy (to be renamed) and what our thoughts are about it. This is really raw and fresh for us so it’s a very candid look into our thought process.
For those of you wanting the outline of this strategy without watching the video here are the basics:
- You purchase 2 properties valued at approximately $400,000 that rent for approximately $400-$420/week
- You build 1 granny flat on EACH of those properties. This will cost around $110,000 and should rent for around $280-$300/week
- Your properties are now cash flow neutral or positive
- You have a Principal and Interest loan over approximately 25 years
- The properties will now go on to pay themselves off. In 25 years when they are paid off you use the cash flow from the rental income to become financially free.
- By buying these 2 properties you have a financial freedom foundation. You know (bearing unfortunate circumstances) that you will be financially free in the future. You can now focus on living a great life and working in a career you absolutely love.
- You can also get aggressive and lower the time period from 25 years using multiple different methods. Invest in more properties to pay down debt faster, start a business, get a pay rise etc.