EP294: Ken Holmes Shares How To Structure Deals Creatively To Achieve Financial Freedom

Mar 25, 2019

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Ken Holmes has seen (and done!) every type of deal you can possibly imagine! Ken started his real estate career in 1987 and has learned a thing or two during that time. On the show, Ken shares his wisdom of what he wished he'd known sooner and shares his financial freedom formula on how you can replace your 9-5 money with real cash flow that will keep and sustain the lifestyle you've always wanted.

Key Takeaways:

Ken got his start as a real estate appraiser in 1987 and flipped his first house in 1997.
Ken had this goal to make $500,000 a year, but he never put much thought into 'why.'
Ken shares his formula for financial freedom. It comes down to asset x rate of return - taxes = lifestyle.
If you make 8% on your money and you're paying taxes, you need roughly $2m in assets to make $10,000 a month.
However, if you can make 15% on your money and pay no taxes (through a self-directed IRA), you would only need to have $800k in assets to make $10,000 a month.
Your goal shouldn't be to make your first million, it should be to increase your cash flow.
Before setting a net worth or cash flow goal, define the kind of lifestyle you want!
FYI - The desired lifestyle you want is (likely) a lot cheaper than you think it is.
Ken shares a creative deal he did with a church.
Get creative with your deal structures and you can easily get that 15% return on your money.
Ken stresses the importance of understanding what a self-directed IRA can do for you and your money.
The biggest expense you'll probably have in your lifetime is taxes.
Alex shares Ken's steps to financial freedom.
What piece of advice would Ken give his younger self? Stay debt free!

Mentioned in This Episode:

Ken on Facebook Episode 290: "Edwin Kelly on Leveraging Self-Directed Accounts to Build Wealth and Grow Your Portfolio Tax-Free"

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Tweetables:

"I just don't go the debt route. When you talk about financial freedom, you sum it up by making more money than you need and investing that excess in things that produce cash flow. That's it."

"What would you do if somebody dropped $10m in your bank account? What would your lifestyle cost? It's often way less than what you might think."

"When you get a good deal. Stop for a second and think. What else could I do with it?"

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