996: Financial Freedom in 3 Years by Investing in “Boring” Rental Properties

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 29 July 2024

⏱️ 42 minutes

🔗️ Recording | iTunes | RSS

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Summary

Can rental properties replace your W2 income, lead you to financial freedom, and help you build multimillion-dollar wealth in the process? Yes, and Grant Francke is proof you can do it in a few years or less. After the burnout of forty-eight-hour shifts as a railroad conductor (yes, you read that right) left him searching for an escape, Grant stumbled upon real estate investing and the BiggerPockets Real Estate podcast. Within three years, he built up enough cash flow to quit his job and never looked back. In today’s show, Grant walks through the “boring,” stable, and safe rental property investments that have led him to complete financial freedom. He’ll touch on the first duplex he bought, why Grant prefers multifamily real estate to single-family homes, reverse-engineering your financial freedom to calculate HOW many rentals you need, and the sacrifices he had to make to get there. If you’re tired of missing out on time with your family, children, or friends and want to start living life on YOUR schedule while making MORE money than you would at your job, this is the place to start! In This Episode We Cover How to replace your W2 income with real estate investing Calculating your financial freedom number and how much cash flow you’ll need to quit How to test whether or not you CAN live without your W2 salary Why Grant prefers the safety of multifamily rentals compared to single-family rentals Financing and funding your first rentals and what to do when you start scaling FAST The “controlled growth” strategy Grant uses to safely build wealth and make more passive income And So Much More! Links from the Show Join BiggerPockets for FREE Grab Your Copy of “Rich Dad Poor Dad” Find Investor-Friendly Lenders See Henry at BPCON2024 in Cancun! 4 Serious Points to Consider Before Quitting Your Miserable Job to Invest (00:00) Intro (02:02) 48 Hour Shifts!? (03:17) Replacing His Salary (10:21) Quitting and Buying First Rentals (17:33) Current Portfolio and Financing (21:19) Real Deal Review (24:37) Scaling with “Controlled Growth” (30:39) Replace YOUR W2 Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-996 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Have you ever wondered how to use real estate to replace your W2 income?
0:03.4	Have you ever dreamed of time freedom and spending more time with your kids or giving more time to your passions?
0:08.6	Well on today's episode we're going to hear a story about how an investor did just this so you can too.
0:14.4	What's going on investors? I am Henry Washington and I'm solo today because several of
0:23.9	our hosts are taking some time off to enjoy this beautiful summer but today we're
0:27.9	talking with Grant Frankie who's an investor out of Nebraska who has successfully
0:32.0	replaced this W-2 income through real estate investing.
0:35.0	So we're going to talk about how Grant forecasted and planned to leave his W-2 and
0:39.8	how he built up the Kahonis to actually jump off that cliff. We'll discuss the cash flow
0:45.1	that he needed to leave that job and how many doors that he
0:48.6	equated to in his portfolio. We'll also talk about how Grant scaled from zero doors to this level and how he's adjusting or not adjusting his business to grow his portfolio in this current economic environment.
1:01.5	Let's bring Grant on the show.
1:03.0	Grant, Frankie, welcome to the show.
1:05.0	Thanks Henry, happy to be here.
1:07.0	Awesome, man, it's so good to have you. I'm excited to have this conversation
1:11.0	because I think there's some synergies between you and I so that's exciting so yeah
1:15.6	Let's go to paint the picture man. Let's go back a little bit when was the moment that you decided you needed to replace your W2 income?
1:23.0	So I hired out the railroad as a conductor in 2006.
1:27.0	It's a great job if you're single, you don't have any kids.
1:30.0	It changed from me when I started, when we started kids once in Allen and Brennan and my son was born the job is very demanding on your time and weekends and holidays
1:38.9	So at that point my wife and I we decided we need to start looking at something else to do to get me away from that job
1:44.8	Wait, so you were you were a railroad conductor railroad conductor? Yeah for BNSF railways.
	...

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