A successful stock broker friend told me a long time ago that there's only one rule he lives by: "Buy low, sell high." It doesn't matter that you've bought low now and sold high a year from now, or 10 years from now, it only matters that you bought low and sold high.
This is also the key to real estate. If you do this, then you can really start to rake in that passive income.
But you can't just sell high and spend it all--you need to trade up. If you've made a killing on RE in the past 2-3 years like many of my clients did, nearly all of them ended up with either
1. Multiple properties
2. Multi-family properties
3. A wow factor trade up single family home
The ones that traded up to a larger pad in a better neighborhood will still make a killing because their neighborhood keeps getting better.
The ones that doubled their property portfolio or added multi-plexes into the mix, are now happily collecting passive income that increases every year (not to mention their prop values keep going up due to the LA housing market demand) They've basically turned their first profits into cash cows.
Congratulations to all my wonderful clients who are positioning themselves to retire a little earlier!
