How Long Does It Really Take to Get To $100K Passive With Real Estate?

There are tons of videos floating around about getting rich quickly with real estate. But let's be real, real estate is a long game. In this episode, we use a model from the Roofstock Academy Playbook to project exactly how long it would take you to get to $100K per year in passive income based on 3 different sets of assumptions. This episode shows how you can set realistic, time-bound goals for your financial freedom.  --- Transcript Tom: Greetings, and welcome to the Remote Real Estate Investor. My name is Tom Schneider. And I'm joined today by   Emil: Emil Shour   Michael: and Michael Albaum.   Tom: And today we've got a fun episode. So there's lots of content out there that talks about how to become a millionaire and you know how to become rich with real estate and in today's episode, we're going to go through some specifics year by year to meeting some specific goals. So both Emil, Michael and myself, I guess all three of us are going to come up with some scenarios. And we're going to use this tool from Roofstock Academy to see how long it takes to meet our goals. All right, let's do it.   Emil and Michael, what is going on?   Emil: Hey guys,   Michael: Not too much. I'm just getting ready to take off in my van again, we had some solar issues around the road for a week so we came back to home base to get those squared away. So got brand new solar installed brand new batteries, did some plumbing customisations and ready to rip and roar in the next couple days. So we're stoked.   Tom: Very cool, Emil What's going on?   Emil: You know following Michael really sucks because I'm just a guy living in his home just doing normal boring stuff every week. So Michael I'm just gonna vicariously live through you in your van now everything's good. Nothing crazy going on. Yeah, just happy. It's it's summer the waters warming up. So it's been it's been more fun to go surfing in the morning. Don't have to wear booties, feet don't get cold. So that's been nice.   Tom: Nice. Nice. Nice.   Michael: What about you Tom, how comes the construction on the house and the refinances?   Tom: It's coming. Oh, closing on the refi is on Thursday, which is exciting.   Michael: Awesome.   Emil: Nooice!   Tom: Some ammunition for some acquisitions. But yeah, yeah. And the construction is cruising along, almost done. It's like stop and go, you know, like there's like certain dependencies on certain parts of the project and takes a while to get done. And then a bunch of stuff gets done. And then it kind of goes back to a little bit of a halt. But Fingers crossed, we're moving some things back into the kitchen. over the holiday weekend that is coming up. So fingers crossed.   Awesome, guys. So we got a fun episode. This is also going to be on YouTube,I encourage you to check our YouTube station out, just search Roofstock.   What we have here is we have this tool that was built within Roofstock Academy, it's not an over complicated model that just goes year by year. And what it does is, you take some baseline assumptions of your investment, kind of by box right on what type of returns you're getting, what is the cost, and then you extrapolate that over years. And what the model does is it assumes that you're reinvesting all of the cash flow that you're collecting into your acquisitions into the following year. So that way, you know, when you're buying into year two, you're using the income from year one, when you're into year three, using the income from year 2. The model accounts for a little bit of rental appreciation. What the model does not account for which is a benefit in real life, and perhaps we'll work this into the model at some point is doing 1031 exchanges or cash out refi. So, you know, there is ability to move a little bit faster when you're having some appreciation. Emil, Michael, before we get into the specific examples, go ahead.   Michael: I was gonna say I just wanted to take a moment to pause here and highlight and talk about o