BiggerPockets Real Estate Podcast

The Financial Freedom Formula Has Changed (2025 Update)

Jan 13, 2025

Henry Washington, a financially free real estate investor, shares insights after leaving his corporate job for full-time property investing. He discusses the evolving definition of financial freedom and the realistic timelines for achieving it in 2025. The conversation highlights contrasting strategies between active and passive income approaches. Listeners learn about the importance of real estate fundamentals and the balance needed between a stable job and investing. Washington emphasizes the need for patience and strategic planning in building a successful rental portfolio.

35:53

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Episode guests

Henry Washington

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Quick takeaways

Financial independence is not merely quitting a job but having the option to do so while managing active income streams.

Achieving financial freedom through real estate requires a long-term commitment and realistic expectations rather than expecting instant wealth.

Deep dives

Understanding Financial Independence

Financial independence is defined in varied ways, often confused with entirely quitting a job or having passive income streams. One participant emphasizes that true financial independence means having the option to not work actively if desired, with income met through investments, particularly in real estate. This perspective shifts the focus from achieving a state of retirement to establishing a foundational income that lessens the necessity for traditional employment. It highlights that this journey toward financial freedom is more nuanced than simply leaving a day job.

Intro

2min

Understanding Financial Freedom in Real Estate

9min

Evolving Strategies for Real Estate Investment and Passive Income

5min

Navigating Real Estate for Financial Freedom

6min

Navigating Real Estate Investment Expectations

6min

Balancing Job and Real Estate Investing

10min

Can you still achieve financial freedom with real estate investing? Around a decade ago, it was common knowledge that with a few rental properties, you could easily replace your income, retire early, and be fast-tracked to financial independence within just three to five years of investing. Is that possible anymore? How long will financial independence actually take if you start investing in real estate in 2025? And if you feel like you’re almost there, should you quit your job and dive head first into real estate?

We’ve got two financially free investors on the show, each taking different paths to get there. Dave kept his full-time W2 to pay for his more passive real estate investments, while Henry quit his job to buy rentals and flip houses full-time. Would they both be okay if they lost their “active” income today? Yes! But they STILL choose to work to build the dream life that goes far beyond basic financial freedom.

Today, they’re sharing how the financial freedom formula has changed, what you need to do to get on the path to financial independence/early retirement in 2025, and whether you should stay at your W2 while you build your rental portfolio or quit your job to pursue real estate full-time. The good news: financial freedom through real estate is still a significantly quicker route to retirement, but which path will you choose to get there?

In This Episode We Cover:

What “financial independence” really means and how long it will take for you to get there

The cash flow myth that most new real estate investors believe (this could hurt you later!)

Full-time real estate investing vs. keeping a nine-to-five and why you NEED “active” income to scale fast

What to know about full-time real estate investing BEFORE you quit your job

And So Much More!

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