129: How Compressing Time Can Blow Up Your Passive Income
What is your time really worth? 🤔🤔
Imagine if you could use a simple strategy to compress time and get your passive income from apartments skyrocketing. We’re going to show you how to do just that.
If you’re anything like us, then you’re always looking for ways to make more money with less effort and this is definitely one of those strategies.
Time and Regrets
Time ⏰ is the most valuable non-renewable resource. We can always earn more money, but we can never get back the time that has passed ⌛.
It is important to cherish time because it is a limited resource that we have and once it is gone, it is gone forever.
Imagine this: you work long hours at your job, sacrificing time with your family in order to provide for them financially. But as the years go by, you realize that you have missed out on important moments with your loved ones – your child’s first steps, their school plays, their graduation. These are once-in-a-lifetime opportunities that you can never get back.
We love James Clear, and he has a really interesting and pretty quick read of an article that talks about the true value of time.
Basically, no matter what way you look at it, every hour of every day is worth something, whether you are spending that time sleeping, shopping, working, doing errands, or walking your dog.
There are all these crazy and pretty cool methods you can use to really calculate 🧮 the value of your time.
We don’t have the time (pun intended) to get into that today, but it’s definitely worth checking out.
So this realization that you have traded valuable time with your family for work hours can be heart-wrenching 🥺💔.
It can leave you feeling regretful and saddened that you were not able to be there for your loved ones in the way that you wanted to be. Hang tight, because there’s a light at the end of the tunnel.
What if we told you there’s a way to compress time, get more done in less time, AND achieve your goals faster? It’s possible, and it all starts with investing in apartment complexes.
Why Apartment Investing Helps Compress Time
When you invest in apartment buildings, you’re able to leverage the power of passive income. Passive income is income that you earn without actively working for it.
In other words, you set up a “perpetual ATM” system, and the income keeps coming in without you having to do anything.
Think of it like a slot machine 🏧 that just keeps paying you out.
This is in contrast to active income, which you earn by trading your time for money. For example, if you work a job, you’re earning an active income. You have to show up and put in the time to get paid. Regardless of how much you make, you still have to show up in order to earn your paycheck.
The fact that many high-income earners still trade their time for money can be emotionally draining. It can feel like being on a never-ending hamster wheel 🎡, where you are constantly working and sacrificing your time in order to make a living. If you’re lucky, you might get a little 5-10K salary bump annually, and trust us, you don’t even want to do the math on what that looks like in relation to your time worked.
For so many of us, the pressure to provide financially can be overwhelming. They may feel like they have no choice but to work long hours and sacrifice their personal time in order to make ends meet. This can lead to feelings of exhaustion, stress, and frustration. According to a recent study, mental health is at an all-time low, and 20% of Americans are experiencing mental illness of some kind.
At the same time, it can be hard to break out of this cycle. Even if you are successful and make a good living, the financial responsibilities and expectations can be overwhelming. You may feel like you have to keep working, even when you would rather be doing something else, in order to maintain your income and provide for your family.
This constant trade-off between time and money can be emotionally taxing 💸.
It can be difficult to find a balance and to feel like you are truly living the life you want, rather than just working to survive.
Passive income, on the other hand, allows you to earn money while you’re not actively working.
This frees up your time ⌚ to focus on other things, like building your business or spending time with your family.
There is a sense of relief and freedom that comes when one learns how to use passive income to support their family financially. It can be emotionally refreshing to know that you have a source of income that does not require your constant time and effort.
At first, it may take some effort and time to set up the passive income stream. But once it is established, it can provide a steady flow of income without requiring your constant attention. This can be a huge weight off your shoulders.
Apartment syndication is when you pool your money with other investors to purchase an investment property, under an apartment syndication sponsor. It’s essentially like you’re joining forces with other investors to purchase an apartment.
👉 That’s actually all *you* have to do. 🥰🥰
This can be a great way for someone to grow their passive income portfolio with minimal effort because it allows them to invest in a large-scale real estate project without having to handle the day-to-day management of the property.
Passive investors invest their capital for the purchase and renovation of the property 🏢, while a professional team manages the asset with the help of a professional third-party property management company handling the day-to-day operations, such as leasing and maintenance.
All those things that, let’s face it, you probably don’t want to do, maybe don’t have the knowledge or expertise, and definitely don’t have the time for.
As a passive investor in apartment syndication, you would receive a share of the income generated by the property (aka cash flow), typically on a quarterly basis, along with any profits from the sale of the property when it is eventually sold. This can provide a steady stream of passive income, without requiring you to be actively involved in the management of the property.
Just to clue you in on where we are at, for all things Kitti Sisters syndication deals, we typically aim to hit around 6 or 7% annual average cash flow and an overall return of over 100% return.
Especially, what this means is, if we hit our projections, an investor who puts in $100,000 will see that double to $200,000 within a short 3-5 years holding period. Sounds great, right?
But apartment investing isn’t just about passive income. It also allows you to compress time in other ways. F
or example, instead of buying your own single-family rental or smaller apartments on your own, when you team up with a professional syndicator, they will take all the day-to-day tasks of running the building.
This frees up your time to focus on other things, like finding new investment opportunities or growing your business. 🤓🤓
Overall, apartment investing helps compress time by allowing you to earn passive income and delegate tasks to others, freeing up your time to focus on what’s most important to you.
5 Tangible Steps to Compress Your Time Via Apartment Investing
Now that you understand the importance of compressing time and how apartment investing can help, let’s look at five tangible steps you can take to get started:
NO. 1️⃣ Educate Yourself
The first step in any investment is to educate yourself 📖. We feel like we sound like a broken record sometimes because we constantly encourage you to build your knowledge,but we do this because it is SO important.
What does this look like for you? Well, for starters, learn as much as possible about apartment investing, including the different types of apartments, how to finance a purchase, the best markets to invest in, etc. There are plenty of resources available, including books, online courses, and local real estate investor groups.
NO. 2️⃣ Create a Plan
Once you have a good understanding of apartment investing, it’s time to create a plan. This should include your goals, budget, and a timeline for achieving those goals. Be realistic, but also be ambitious. This is your roadmap to success. ✨
You wouldn’t start any kind of business without a business plan, and apartment investing is no different.
NO. 3️⃣ Find a Mentor
It’s always helpful to have someone who has been there before to guide you. Find a mentor 👩🏫 who has experience with apartment investing and can offer guidance and advice. This person can help you avoid common mistakes and accelerate your learning curve.
Please remember that this should be someone that you actually like. That might sound silly, but just because someone has a lot of knowledge, that doesn’t mean that they should be your mentor. Remember our charcuterie rule – if you wouldn’t want to share a glass of wine and a cheese board with them, maybe rethink mentorship and find someone who you enjoy personally and professionally.
NO. 4️⃣ Start small
You know the saying: Rome wasn’t built in a day? Well, neither were apartment buildings, Don’t try to bite off more than you can chew. It’s better to start small and gradually build your portfolio over time.
We call this little gem 💎 a micro-investment. This will give you a chance to learn and gain experience without overextending yourself. So instead of investing all your available liquid funds into apartment syndications, try one or two investments to start and see if you enjoy the experience.
Once you do (and we are pretty sure you will enjoy it), then it’s time to ramp up to blow up your passive income even faster.
NO. 5️⃣ Surround Yourself with the Right People
If you surround yourself with like-minded people who can support you and help you grow, you will achieve things you never thought possible.
Our friend James Clear whom we referenced earlier calls this a keystone community – people who push you, make you better, help you succeed, and then are there to celebrate your wins.
Don’t forget to join the Kitti Freedom Club for even more content and ways to grow your passive income.
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