Success isn’t a target—it’s a byproduct of purpose-driven action. In this episode, we map the path from “right here, right now” to economic independence using micro-wins. We ground it in Viktor Frankl’s wisdom, real family stories (defense wins games!), marathon prep, and the Iron Cowboy’s “one step at a time.” Then we translate all of it into a Moneyball Real Estate game plan: define your why, reverse-engineer the route, act consistently, use honest numbers, and pick the plan that fits—starting out, transitioning a portfolio, or improving retirement.
00:00 – Success Mapping & The Principle
“Always start where you are.” Success as process, not destination.
01:00 – Viktor Frankl’s Lens
Don’t aim at success; let it ensue from dedication to a cause greater than yourself.
02:23 – Define Your Why
Family security, legacy, contribution—let purpose drive consistent action.
03:30 – Start Where You Stand
Your path begins precisely at your current baseline.
04:47 – Braxton & Defense Wins Games
Find your unfair advantage; play to your strengths → micro-win momentum.
06:20 – The Three-Step Loop
Identify where you are; 2) Set one small, winnable goal; 3) Repeat.
07:11 – Breaking Big Into Small (Parenting & Pressure)
Deconstruct problems → manageable victories.
08:05 – Steve’s Boston Marathon Blueprint
Reverse-engineer pace, elevation, fueling, mindset—plan the course.
09:31 – The Iron Cowboy Formula
“One step at a time.” Move the mountain: one shovel of dirt today.
11:54 – Moneyball Mapping in Real Estate
Four singles to score a run; avoid scoreboard obsession and instant gratification.
13:30 – The $30K/Month Trap
Lofty goals are fine—timelines must be realistic and resourced.
14:09 – Reality Check: Equipment, Practice, Time
No bat? No reps? No home run. Build skill and capital the right way.
16:36 – Use Good Data, Not Pretty Data
How “cherry-picked” pro formas mislead; match financing method to math.
18:56 – Numbers Tell Stories
Same stat, different spin—context and intent are everything.
20:10 – Your Game Plan: The Bridge from Here to There
Pre-approval, cash flow modeling, risk plan, annual reviews.
21:19 – Four Common Game Plans
Just Starting Out; 2) Transitioning a Portfolio; 3) Improving Retirement; 4) First Few Micro-Wins.
22:10 – Kevin’s First Leap (House Hack + Rental)
One move changed cash flow, equity growth, and trajectory.
23:42 – Funding the First Deal
HELOCs, cash-out refi, 401(k) redeploy (with pros’ guidance): seed vs. harvest analogy.
26:04 – From 1 to 10 Properties (Over Time)
Refi, 1031, snowball principal paydowns → independence.
28:24 – Transitioning Example: Cynthia & Brent
Hands-on to done-for-you; commercial to residential—cash flow & effort improved.
30:45 – Retirement Boost Case
$2.80 bank interest vs. $300/mo cash flow—breathing room matters.
31:40 – Your First Seven Base Hits
Save down payment, get approved, assemble team, write offers, close, lease, profit.
33:07 – Chapter Wrap & Micro-Wins Checklist
Align plan to stage, use honest numbers, stack wins, repeat.
Key Takeaways (3)
Purpose first, profit follows. When our actions align with a cause bigger than us, success “ensues,” not because we chase it, but because we’re faithful to the right work done consistently.
Reverse-engineer reality. Start where you are, define where you’re headed, break the distance into daily micro-wins, and repeat—just like marathon pacing or the Iron Cowboy’s “one step at a time.”
Use math that matches the method. Don’t mix cash-buy cash flow with leveraged ROI. Honest numbers, clear context, and annual reviews keep you on a true Moneyball path.
Kevin Clayson (00:00.121)
Chapter five, success mapping. General principle, always start where you are. Pursuing success with purpose and consistency. The road to success is often winding, filled with trials, setbacks, and opportunities for growth. As we embark on our journey in real estate, or any other field for that matter, it's crucial to recognize that true success isn't merely a destination, but a continuous process of growth
and self-realization. It demands consistent action, driven by the right reasons. Consider the profound words of Viktor Frankl, a renowned psychiatrist, a Holocaust survivor, and the author of one of the most powerful books in history, A Man's Search for Meaning, who expressed a timeless truth about success and happiness. He said, quote, don't aim at success.
The more you aim at it and make it a target, the more you're going to miss it. For success, like happiness, cannot be pursued. It must ensue. And it only does so as the unintended side effect of one's personal dedication to a cause greater than oneself or as the byproduct of one's surrender to a person other than oneself. Happiness must happen. And the same holds for success.
You have to let it happen by not caring about it. I want you to listen to what your conscience commands you to do and go on to carry it out to the best of your knowledge. Then you will live to see that in the long run, in the long run, I say, success will follow you precisely because you had forgotten to think about it. I love that quote. It's so powerful. If you haven't read the book, Man Search for Meaning, please go do that. It will change your perspective on a lot of things. Okay.
Back to the script. What Frankel's words encapsulate is the essence of success as a byproduct rather than a goal in itself. Success is the inevitable outcome when our actions are consistently aligned with our core values, our deepest convictions, and a cause greater than ourselves. It's knowing where you want to go, then stacking micro-winds to get there. In the context of real estate investment, this means that pursuing success isn't just about financial gains or accumulating properties.
Kevin Clayson (02:23.841)
It's about defining what success means to you on a personal and profound level and then dedicating yourself to that cause with unwavering commitment. Are you driven by the desire to provide financial security for your family, to contribute to your community, to leave a legacy? Whatever the motivation, it must be authentic and powerful enough to propel you forward day after day without losing sight of the bigger picture. The consistency in action guided by a purpose greater than mere success
is what will lead you down the path to true fulfillment and accomplishment. As Frenkel so eloquently put it, success will follow you precisely because you've forgotten to think about it. Instead, you focused on what truly matters, allowing success to ensue naturally as a reflection of your commitment to something meaningful and greater than yourself. In the following sections of this chapter, we'll explore how to create a strategic game plan and act...
consistently to turn your real estate dreams into reality, but always remember, the path to success begins with understanding why you're on it in the first place. In addition, your pathway to success, whatever that eventual goal may be for you, will always start right where you are, precisely at this moment where you currently stand. Recognizing your starting point. Kevin here. My 12 year old son's journey with basketball comes to mind when I think about understanding one starting point.
In his first game of the fifth grade season, he was noticeably overwhelmed whenever he had to dribble, shoot or pass the ball. By the second game, however, he was just naturally all over his man, putting his hands up and stepping into passing lanes. At that moment, I was reminded of NBA legend, Dennis Rodman. Despite an average career scoring average of just over seven points per game, Rodman's considered to be one of the top 75 players in NBA history. Why? Because he was a phenomenal rebounder, defender.
and formidable presence. didn't excel in shooting, passing or dribbling, yet he remains one of the sports greats. When my son's coach pulled him out of the game for a breather, I pulled him aside and told him, Braxton, forget about everything we practiced. I just want you to be a nuisance. Get in your opponent's face. Make it difficult for him to shoot, dribble or pass. Chase him around the court even when he doesn't have the ball. Make it tough for his team to pass to him. That advice seemed to flip a switch in Braxton.
Kevin Clayson (04:47.971)
Once he understood his natural strengths and how to harness them, he became a new player. Instead of appearing lost and nervous, he played like a determined and fearless athlete. Defense may not be the most glamorous aspect of basketball, but it undoubtedly can be a game changer. Braxton's team ended the season undefeated, and I must say with a good deal of parental pride that he effectively neutralized the star players on the opposing teams.
recognizing this starting point and crafting a strategy from there was his real triumph, a micro win. The first step in any journey is identifying where you are. The second step is designing a small achievable goal, a micro win based on that starting point. The third step is to continually repeat step two. By focusing on achieving the first small win based on your current position, you lay a solid foundation for your progress toward more significant goals.
Let's be clear, this isn't about downscaling your ambitions or surrendering grand dreams. On the contrary, this strategy is an efficient way of fulfilling those dreams. Consider it a form of training that improves your odds of winning the game. The micro win strategy isn't about procrastination or extending the journey to your end goal. Instead, it involves charting a practical route based on three essential pieces of information. Where you currently are, where you want to end up,
and the most straightforward path to get from here to there. Charting your course. You might be contemplating how to kickstart your journey. The process is actually straightforward. Dissect your goal, then take deliberate strides in the right direction. Step one, start where you are and break it down. Kevin here. I remember a time when my daughter was 12 and I had to pick her up from a sleepover at her friend's place. She emerged from the house in tears.
It took some coaxing before she could articulate what was troubling her. It was a mixture of academic pressure, peer interactions, and the general anxieties associated with preadolescence. As a parent, my instinct is always to step in and solve her problems, but that's not always feasible or helpful. Instead, in that moment, we sat in the car and deconstructed her challenges together, brainstorming ways to manage each issue.
Kevin Clayson (07:11.858)
We distilled solutions and the manageable victories that she could tackle using a base hit strategy and starting that moment. Let me, Steve, illustrate another example of breaking things down. When I aimed to qualify for the Boston marathon, I had to prepare my body to cover a staggering 26.2 miles in under three hours and 25 minutes. To accomplish this, I formulated a 16 week training plan, gradually increasing my mileage, incorporating speed training,
and alternating carb intake regimes. Beyond the physical prep, I dissected the marathon itself. I had a target completion time in mind, so I studied the race course, calculated the time I could take to cover each mile. This meant dividing my target time by 26.2 and tweaking the estimated time for each mile based on the race route's elevation gains and losses. I planned when to eat, use restroom facilities, or visit first aid stations.
I even anticipated my physical and mental state at various stages of the race. I recognized these factors could significantly influence my marathon performance, notwithstanding the extensive physical preparation. At times, you might stare at your financial future and feel daunted by the seemingly insurmountable task of reaching your goals. But by deconstructing or reverse-engineering these goals, we can transform what seems impossible into a viable, attainable target. Step 2
initiate the journey one stride, one micro win at a time. Among our heroes and a personal friend is an individual named James Lawrence, more famously known as the Iron Cowboy. After shattering multiple Guinness World Records in competitive triathlon racing, James found himself questioning his own mental and physical boundaries. James conceived a staggering goal to complete a full distance triathlon.
That's a 2.4 mile swim, followed by a 112 mile bike ride, followed by a full 26.2 mile marathon, and to do that each day for 50 consecutive days. If that wasn't ambitious enough, he chose to undertake each of these 50 full distance triathlons in a different state on each of the 50 days. And he accomplished it.
Kevin Clayson (09:31.719)
Given your listening to this insightful book, we recommend you delve into James's own book, Redefine Impossible for the complete story. Shortly after James triumphantly concluded his 50, 50, 50 feet, we had the opportunity to pose a question he's likely been asked countless times. James, how did you manage it? How did you achieve something so physically formidable? His response encapsulated an enduring truth we want to highlight here. He simply said,
one step at a time. In essence, analyze the task, dissect the steps to accomplish it, and then commence with the first most manageable step. For those among us aspiring to conquer our own seemingly insurmountable tasks, we should heed James's advice. Let's say, for example, you aim to move a mountain. It's possible. Your first stride, grab a shovel and start with one scoop of dirt at a time.
As soon as you've moved that first shovel full of dirt, you've already shifted a portion of that mountain. That's a micro win worthy of recognition. Step three, repeat step two. Consistency is key in the pursuit of any goal, be it financial success, athletic prowess, or personal development. The journey to success isn't marked by sporadic leaps, but rather a consistent sequence of strides and micro wins.
But just as James Lawrence conquered the monumental 50, 50, 50 feet by breaking it down into individual steps, so too can you apply this principle to your financial future or other life ambitions. By repeating those manageable victories, embracing the gradual accumulation of progress and celebrating each micro-win along the way, you'll find that the seemingly insurmountable becomes attainable. This step is about embracing the power of persistence, understanding that each effort
no matter how small, moves you closer to your ultimate goal. It's a reminder that success is not a one-time event, but a continuous process, a series of purposeful actions, taking one after the other. Repeat, persevere, and watch as your mountain begins to move. Real estate application of principle.
Kevin Clayson (11:54.005)
The best way to achieve your desired income replacement goal is to create a personal game plan. Establish what you are working with, determine what you are wanting to accomplish in the long run, reverse engineer the path from there to here, and take your first step forward. Moneyball mapping. In baseball, scoring a minimum of one run for the team requires at least four successful batters, each hitting singles and securing their base.
A strategy for each base hit is essential. If your focus is solely on the runners about to sprint for the home base or batters aiming for a home run, you risk overlooking plays that could potentially make or break the game, which leads us to a secondary pitfall of constantly fixating on the scoreboard, a theme we've mentioned earlier, and that pitfall, setting unrealistic expectations. When someone desires to see their score aligned with an ideal envisioned in their mind, they tend to want instant gratification.
We've reiterated this throughout our discussion. The micro wins mindset hinges on small victories, accumulating over time to achieve your goals. Our real estate strategy is rooted in slow conservative growth, an approach that might not always align with those seeking a quick ramp up of their scoreboard figures. A conversation with a potential client interested in real estate illustrates this point perfectly. Upon asking him about his objectives for a real estate portfolio,
He expressed a desire to earn $30,000 in monthly residual income, a lofty goal, but achievable over a couple of decades through steady conservative moneyball real estate strategies, depending on initial resources. We followed up by asking when he hoped to realize this $30,000 per month goal. His reply was ideally within the next year, but I'm okay if it takes a bit longer. The catch.
He didn't even have enough save for a down payment on a single leveraged property. While we're all for manifesting your best life, you can't simply will millions of dollars of consistent and conservative wealth generation through real estate into your portfolio without a realistic plan for accumulating necessary resources. In baseball terms,
Kevin Clayson (14:09.982)
It's akin to expecting to hit a home run on your first swing against a hundred mile an hour fastball without even possessing a bat or having played the game before. Without a sizable upfront investment in properties, making such a wish a reality is next to impossible. Similarly, an individual with zero batting experience is unlikely to hit a home run against a professional pitcher. Winning at baseball requires the right equipment, regular attendance at practices and time investment.
Every child on the baseball field dreams of becoming a pro, yet one can't even enter the MLB draft until reaching 17 years of age. Real sustainable wealth and results necessitate time and effort. Mastery of the game doesn't happen overnight. The micro wins investing strategy follows a similar principle. Starting from scratch is feasible. We're always open to discussing options for obtaining that initial down payment or first property purchase.
However, there will be no straight unimpeded path to your ultimate goal with zero pauses along the way. It's highly unlikely you'll replace your income within a year. Recognizing where you stand, where you aim to go, and devising a realistic route to get there is crucial. Use good data for your strategy. As you'll see when we delve into Principle 8, we thrive on property analysis. We review hundreds of properties monthly, scrutinizing each based on the Moneyball Real Estate Criteria.
Our in-depth understanding of these metrics and calculations is paramount. If a property is fully paid off, either bought outright or the mortgage is paid off over time, its annual realizable return on investment and realized return on investment percentages will be notably lower than those of a leveraged property. However, because there are no mortgage payments eating into the rental income, the cash flow will be significantly higher. We've come across instances where a company lists a property's purchase price
and subsequent acquisition cost as if the home was being financed, meaning the out-of-pocket cost amounts to around 20 % of the purchase price. The same property's calculations then portray the cash flow numbers as if it were a cash buy with no debt service to consider. Then they present the projected annual return on investment as if it were a leveraged purchase, resulting in a much higher return. This isn't technically incorrect.
Kevin Clayson (16:36.066)
but it represents a pick and choose approach from two entirely different purchasing methods to make the deal appear more attractive than it is to prospective buyers. So what's the key takeaway? Numbers are neither honest nor deceptive. They're tools people use. It's crucial to equip yourself with the skills to delve into these numbers and spot discrepancies just like we do. Here's a story from Steve emphasizing that numbers aren't always as they seem.
After reviewing his taxes, he questioned his accountant about discrepancies. His accountant responded that in accounting, numbers aren't necessarily a science. He then asked what two plus two equals. Steve leaned in and listened carefully. His accountant dimmed the lights, closed the window shades and responded, audio on it to be. Numbers can be manipulated to present a particular image. Whether that's lower income and subsequently lower taxes,
or higher income resulting in higher taxes, but qualifying you for more loans to expand your portfolio. One year, you might need to demonstrate a $125,000 income to leverage your next property. But in a year where you're not seeking to grow your portfolio, you can opt for a lower income, reducing your tax liability. This isn't dishonesty. Lying on your taxes is a definite no-no. It's a matter of selecting legitimate write-offs and categorizing things to present the desired image.
This principle applies beyond the realm of finances. Consider baseball batting statistics. A batting average of 300, or getting a hit during 30 % of your at-bats, is considered good. But what if we phrase it like this? Quote, this player only gets on base three out of 10 times he's at the plate. He's a 70 % bum and a 30 % player.
Depending on the context, his 30 % success rate can indicate he's not a particularly good player or that he's statistically solid. The story numbers tell is subjective. When reviewing real estate figures, it's critical to consider the motivation behind the number presented. Whether you're working with a company or striking out solo, even if the number is accurate, it can be manipulated to paint a misleading picture. Context is everything. For instance, a real estate website
Kevin Clayson (18:56.768)
might present out-of-pocket costs as if the property is being financed, but project rental income as if the property is bought outright. In essence, they might cherry-pick figures from two completely different purchasing methods to make a deal appear more appealing to potential buyers. You must not commit to a deal without an accurate context to gauge the property's performance and, more importantly, how it aligns with your personal journey towards economic independence.
Achieving income replacement through real estate takes time and many singles. By using real data and understanding its context, you look through a lens of math that matters to you, not just figures that appear appealing on a website to prompt you to act. Formulating your game plan, the road to success. When it comes to investing in real estate, a well-grounded game plan is vital. It enables you to set distinct goals, understand your financial standing and resources,
and make knowledgeable decisions about possible investments. Importantly, it also aids in the risk management and determining the amount you need to invest and how to finance your first investment. A comprehensive real estate game plan should encompass a detailed pre-approval, a projection of cash flow, and a strategy for handling any potential risks. At its core, it needs to establish your current position, your destination, and devise a method for bridging that gap.
We devote each day to creating and laying out game plans tailored to our prospective clients with each plan as unique as the individual it's designed for. We also make it a point to circle back annually for a game plan review, going over all the performance data of our clients' properties to make the most informed decisions moving forward. A useful mindset for adopting the base hit strategy is to think of it as a reverse engineering of your goals. Start with the grand vision of what you aim to achieve.
then break it down into smaller milestones that need to be met to reach that overarching goal. This approach effectively helps identify your bases, develop your strategy, set realistic expectations, and monitor your progress toward acquiring the resources and knowledge necessary to fulfill your ambition. Although a game plan is a personal, dynamic, and evolving blueprint, we often encounter several common patterns. We hope to have the opportunity to speak with you personally and help construct your tailored game plan.
Kevin Clayson (21:19.258)
However, if we don't get that chance, we'll share four different relatively common game plans that we often deploy for many of our clients. Just starting out. Hi, it's Steve. When we embarked on our company's journey, Kevin had only ever completed a single real estate transaction personally and was uncertain about how to transition into an investor. He had a strong understanding of mortgages, but that was the extent of it. Rewind to 2007 and I helped Kevin find a home for his family.
The house had sound equity, was structurally solid, and was situated in prime location. Additionally, it featured a separate entrance leading to a basement apartment. Simultaneously, he moved out of his town home and converted it into a rental. Kevin also converted the basement of the new home into a separate rental unit. In one fell swoop, Kevin's situation transformed. He went from owning a single town home and paying about $1,200 a month for his mortgage to owning two properties
his primary residence and his townhome. His new primary residence had a monthly mortgage of $1,700, but he rented out the basement for $800 a month and his townhome for $1,400. This transition shifted his financial liability from $1,200 a month on one property to a combined liability, taking into account the rents he was receiving, of just $700 a month while owning two properties. Not only did he have an additional net $500 each month in his pocket,
but he also had two properties accumulating equity every single month and providing tax benefits every single year. This starting out game plan primarily focuses on one critical goal, acquiring your first property. That property may well be a primary residence, but if you manage to secure a primary residence, thanks to the wealth creation properties of real estate, you're likely already well on your way to further success.
If you've been diligently saving and patiently awaiting the right opportunity, beginning with one investment property could be your ideal game plan. In fact, it's probably the most common strategy we see among our clients. Here's how it typically unfolds for many of our clients. You use your resources to acquire a simple and conservative moneyball real estate single. For instance, if you've amassed substantial home equity in your primary residence, you could conduct a cash out refinance, reset your loan and extract
Kevin Clayson (23:42.94)
tax-free dollars from your home. This cash could then fund the down payment on your first property. If you've locked in one of the extremely low interest rates that were available from 2020 to 2022, consider talking to your bank or a local credit union about whether a home equity line of credit or a HELOC might be an option for accessing equity for a down payment. If you have an old or current 401k,
and you're weary of the stock market's volatility, it might even be sensible to withdraw money from your retirement accounts to invest in your first property. Naturally, you'll want to consult with a financial planner, accountant, or tax expert when deciding to use your resources in this way. You might be thinking, Kev, I don't want to pay taxes on a large sum I withdraw from a retirement account. And we understand that concern. But let me pose a question. If you owned an apple orchard that was going to produce apples for decades,
Would you rather pay tax on the harvest year after year or pay tax on the seed upfront one time and then enjoy tax free yield every year after that? We suspect you might prefer paying tax on the seed. Regardless of how the route looks, if you can accumulate enough liquid resources to purchase one property, the Moneyball Real Estate Way, that initial capital can serve as the seed you plant for many years of fruitful harvest.
It generates a modest amount of cashflow and tax benefits for you because your tenants begin paying down your principal all while your home appreciates year after year. At some point within three to seven years, depending on your property's depreciation and the market conditions, you may be able to refinance your down payment out of property number one and use the equity you've drawn out to purchase a second property. At this point, around an average of five years in, those two properties could represent a total
of around $2,000 a month in average monthly increases. It may take another three to seven years, but perhaps at that point, you can sell your two properties and use the proceeds to purchase three new properties utilizing a 1031 exchange. From there, the process repeats. Once you own 10 properties, you could even begin using the cash flow from all the properties to pay down the principal on the home with the smallest balance. Once that one is paid off and your cash flow increases,
Kevin Clayson (26:04.708)
use all the cash flow to pay off the second home and so forth until you own all 10 properties free and clear. It might take more than 15 years to achieve complete financial independence through this route, but it is entirely achievable. If at any point along the way you come across additional capital, say from an inheritance, a pay raise or a significant business success, you can invest it in an additional property on top of the organically growing portfolio
thereby accelerating the process of total income replacement. Transitioning a portfolio. Another typical game plan we encounter involves clients who already own real estate but are largely managing it themselves and are ready to adopt a more hands-off approach. Take our amazing client, Cynthia, for example. She managed a portfolio of properties independently for nearly 20 years. Cynthia had been on our email list for a while and was also friends with some of our long-standing clients.
However, when her husband was diagnosed with lymphoma, she began to consider making a change more seriously as she wanted to spend more time with her husband. Around the same time, Cynthia tuned into our podcast, Replace Your Income, and heard us discuss the value of adopting the Moneyball real estate strategy and having it executed for you. Realizing that she needed to do something about her retirement, especially given the upcoming challenges, she decided to take a different path.
Cynthia ended up selling many of the investments she'd been managing for years and used the proceeds to purchase multiple properties, some free and clear, others financed. As a result, she quadrupled her overall monthly cashflow and practically eliminated all the work she'd been doing for many years in managing tenants, properties, and her portfolios books. Another perfect example is our client and friend, Brent.
He had already been successful in commercial real estate investing and wanted to expand his portfolio to include single-family homes. Brent and his wife converted their 401ks into self-directed IRAs and bought a few homes with us within their retirement accounts. The purchase and subsequent results were so exceptional that when it was time to decide what to do with the commercial strip mall they owned, they chose to sell it and transfer all the proceeds into more moneyball real estate singles.
Kevin Clayson (28:24.67)
They purchased homes in four states with our teams, witnessing a 35 % increase in profits by shifting from the commercial shopping center to residential real estate with our teams. have countless stories just like Cynthia's and Brent's. If you're already a successful real estate investor and you're wondering whether you could enhance your cashflow or significantly reduce your effort and headaches, Moneyball Real Estate might be a good fit. Analyzing your current portfolio,
envisioning what could be, and then considering the amount of time, effort, and work you're investing in your successful portfolio might allow you to inch even closer to economic independence. Improving retirement. Many people we work with have saved money, built up retirement accounts, or accumulated substantial home equity, and are either already retired or approaching retirement. If you're in this category, total income replacement
might not be an option if time is not on your side. Or you might already be living comfortably and simply wishing to supplement your savings a bit more. Consider a senior couple we assisted who bought a home in California in the early 70s where they raised their children. Wanting to live closer to their children and grandchildren, they decided to sell their home in 2019 for over $700,000 and use the proceeds to relocate a couple states away.
After they bought and settled into their new home in their new state, they had nearly $400,000 left over languishing in savings and checking accounts. The interest they were earning each month was paltry. We calculated the percentage interest the bank was giving them and it was something around 0.00008%. This is precisely why banks give you a lollipop every time you visit a branch. They're subtly suggesting how they perceive you.
Enjoy your dumb dumb dumb dumb. We helped this couple now in their 80s to take some money from their savings account and invest it as a down payment on an investment property. They weren't seeking to become wealthy. They simply wanted a bit more financial breathing room. That property now provides them with $300 a month in cash flow. Compare $2.80 a month with $300 a month on the same money. And which would you choose?
Kevin Clayson (30:45.938)
A game plan does not necessarily have to lead to income replacement, but it should foster a level of economic independence, freeing you from feeling trapped by your financial circumstances. Your first few micro wins. If you're aiming to kickstart your real estate investment journey, your initial objective should be securing your first property. The mission could be segmented into manageable tasks or as we like to call them, the basis. Number one.
Accumulate sufficient funds for a 20 to 25 % down payment on your targeted home type. We recommend median priced single-family residences. Number two, obtain approval for a home loan. Number three, engage with realtors, account executives, loan officers, and other key players who will guide you through the home selection and acquisition process. Number four, identify a suitable property and submit an offer. Much more on this in the next three chapters. Number five, successfully close the deal.
Number six, collaborate with a property management company to find a tenant for the property. Number seven, finalize the lease agreement and commence earning profit. Each of these stages represents a base hit and each could be further divided into subtasks. The full spectrum of steps involved in acquiring real estate is extensive, but every single step deserves acknowledgement. Each one moves you closer to victory, even if it doesn't immediately reflect on the scoreboard. While our focus here is real estate,
The principle is applicable beyond property investment or financial plans. The strategy of reverse engineering your goals and challenges is a versatile tool for designing your base hit approach for any scenario in life, no matter how tangible or abstract. Whether you're aiming to move a mountain, complete 50 consecutive triathlons, or replace your income with real estate, the fundamental principle remains consistent. Take that initial feasible step right away.
In conclusion, Chapter 5 has emphasized the importance of creating a personalized game plan tailored to your unique situation and goals. This could involve starting with a single investment property, transitioning an existing portfolio, improving retirement, or scoring your first few micro wins. By breaking down your overarching objective into manageable steps or base hits. By breaking down your overarching objective into manageable steps or base hits.
Kevin Clayson (33:07.998)
You can make the process less overwhelming and more achievable, inching closer to your ultimate goal of economic independence with each completed step. Chapter five, ideas summary. Number one, craft a real estate plan that resonates with your unique situation and goals. Whether you're just starting out or looking to transition or improve your existing portfolio. Think of this as money ball mapping where you identify your current position and desire destination, then chart a course to get there. Number two,
Utilize accurate and reliable data in your strategy rather than relying on false or inflated numbers. Ensuring that your plan is grounded in facts is key to successful real estate investing. Number three, recognize and align with one of the four types of game plans that suit your stage and needs. Just starting out, start with one property, transition your portfolio or improve your retirement. Each offers a distinct pathway tailored to specific circumstances and goals.
And number four, follow a step-by-step process from accumulating funds for a down payment to finalizing the lease agreement. Engaging with key players and understanding your targeted home type will lead to a successful deal and consistent profit. Chapter five, micro wins. Number one, what stage are you at in your real estate journey? Reflect on your current position and determine which game plan aligns with your specific needs and objectives. This self-awareness is the first micro win on your path to success.
Number two, whether it's acquiring your first property or improving your retirement plan, define what success looks like for you. Break it down into actionable steps and celebrate each micro-win along the way. And number three, are you using reliable and factual data in your investment decisions? Assess the quality of your information and if needed, seek out trusted sources that can provide accurate insights. This commitment to truthfulness in your strategy is a significant
micro win in itself.