“Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect.” Romans 12:2
Your mindset has a big role to play in determining what happens in your life. It can direct you to good things, or it can block you from blessings. Your money mindset is no different. My name is Mike Davis, and I’m one of the coaches in The WealthBuilders Real Estate Coaching Program. Though, there was a point in my life when I never would have thought that to be true.
I’ve known Billy and Becky Epperhart for over 30 years. About 20 years ago, Billy started encouraging me to invest in real estate. I heard him out but dismissed the idea. For starters, I didn’t think I could do it. And I didn’t understand why I needed to. All of my bills were paid, and my family never had lack. Even though I lived paycheck to paycheck all my life, I had enough and considered myself blessed. However, in hindsight, I believe God wanted me to see that He didn’t only want me to be blessed. He wanted me to be a blessing, too.
[Click here to listen to this blog’s corresponding episode on The WealthBuilders Podcast!]
The Shift in My Money Mindset
Billy and I continued to meet, but one specific lunch in 2014 was different. God gave me the ears to hear. Billy (or Billy Wayne, as his old friends call him) and I shot the breeze for a while. Then, the conversation eventually turned to real estate.
“I only have $5,000. I know I can’t get in the real estate business,” I confessed.
“Well, how much equity do you have in your home?” Billy asked.
“It’ll be paid off in two years.”
Then, Billy started to get really excited. “You can absolutely do this, Mike!” he encouraged.
We couldn’t find any paper, so we started to jot things on a napkin. He told me that if I had $100,000 worth of equity in my home, I could take it out and put a down payment on four different houses. A week later, ended up buying 2 houses. Here are some of the things he taught me that could help you, too:
1. See how much equity you have in your home. This is the difference in what you owe on your mortgage and what your home is currently worth. You can take that equity out in the form of a HELOC (home equity line of credit) or home equity loan.
2. Buy for cash flow, not appreciation. You want to get at least 1% of the home’s purchase price in rent each month. (For example, you would want to get at least $1,000 a month in rent from a $100,000 house.)
3. So, find someone who will give you an honest and accurate account of what homes rent for. I found a property manager in Pueblo, Colorado who knew the town like the back of her hand. She helped me immediately determine whether a property would be profitable.
[Related: 3 Actionable Steps to Change Your Money Mindset]
Money that Works for You
Our money is not going to change the world if we remain living paycheck to paycheck. A lot of people aim for a good job. Bill Bronchick, one of our other real estate coaches, used to make $425 an hour as a real estate lawyer, and this is what he said about it—“$425 an hour may seem like a lot, but the following is still true—if you don’t work, you don’t get paid.” In real estate, the opposite is true. Your money works for you whether you’re on the clock or not.
The first investment property I bought after I had my ‘come to Jesus’ moment with Billy cost $45,000 in 2014. My mortgage payment with PITI was about $280 a month, and the cash flow I received from renters was $625 a month. Now, that house is paid off, and I net $1,100 per month from rent each month from that property alone!
The opportunities I’ve had in real estate would not have hit me if my money mindset continued to block them. However, being connected to people like Billy and Becky and The WealthBuilders family changes you. Some things are caught, not taught. Six months after meeting with Billy, I wasn’t living paycheck to paycheck anymore. And these days, I’m giving away more than I used to make! Hallelujah!
Change Your Money Mindset
Do you need to refine your money mindset like I did? Well, I encourage you to come to The WealthBuilders Conference February 18-20, 2022 in Denver, Colorado. The atmosphere will be thick with biblical wisdom, and I know you will get fresh revelation for your life! Click here to register.
