Lifestyle Investor: Create Wealth Without Creating a Job w/Justin Donald
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Episode Description
Welcome to the Freedom Point Real Estate podcast! Jeremy Dyer is excited to welcome Justin Donald to this week's episode and ask him about all things lifestyle investing - from replacing dependence on your W-2 income and minimizing risk in investments to the important role of mentorship and networking and the passion for philanthropy.
Entrepreneur Magazine dubs Justin Donald the "Warren Buffett of Lifestyle Investing" for his prowess in low-risk, cash flow investments. As the founder of The Lifestyle Investor, Justin's philosophy is to generate wealth without creating a job, which he achieved within 21 months, enabling him and his wife, Jennifer, to retire before his 37th birthday. His investment strategies and 10 Commandments of Lifestyle Investing have facilitated deals with over 200 companies, significantly growing his net worth. Justin's entrepreneurial ventures include a large mobile home park portfolio, real estate businesses, fitness franchises, and Stellar, a residential maintenance company. An author and podcast host, his bestselling book, The Lifestyle Investor, supports anti-human trafficking nonprofits. Justin, a philanthropist living in Austin, Texas, with his family, also coaches executives and entrepreneurs on lifestyle investing.
CONNECT WITH JUSTIN DONALD!
LinkedIn: https://www.linkedin.com/in/justinwdonald/
Website: https://lifestyleinvestor.com/
Instagram: https://www.instagram.com/justindonald/
Youtube: https://www.youtube.com/channel/UCCM-bhk3FxHQRDXXlDU2r2Q
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Efficient Setup Costs
"I think we learned that there was probably a more inexpensive way to set it up which in both franchises than what we did and so we overspent."
Justin highlights the importance of being cost-efficient in initial setups. Overspending can impact profitability and financial flexibility. By researching and planning more affordable methods, investors can better allocate funds and improve overall investment health.
Tip #2: Negotiate Personal Guarantees
"I was able to negotiate just a 20% personal guarantee on everything so I I'm not a 100% personal guarantee on on anything that I did in the franchise space."
Reducing personal guarantees minimizes personal financial risk. Negotiating such terms with banks or other financial institutions can protect personal assets and provide more security, especially in volatile markets.
Tip #3: Strategic Real Estate Investments
"How do you de-risk a deal on real estate? Well, you just buy right, you buy at the right price."
Purchasing properties at favorable prices with solid infrastructure is key to successful real estate investment. Identifying undervalued assets in good locations can significantly reduce risks and ensure a higher return on investment.
Tip #4: Focus on Long-Term Debt
"We said no to anything that we felt was risky that was using short-term debt that didn't lock in when they could have locked in a long-term rate."
Opting for long-term debt over short-term options can provide stability and predictability in repayment schedules. This approach protects investors from market fluctuations and interest rate hikes, ensuring more consistent cash flow.
Tip #5: Importance of Mentorship
"I spend a lot of money every year on mentorship, on peer groups, masterminds, just places that I want to be, people that I want to be around."
Investing in mentorship and networking with high-achieving individuals can accelerate personal and professional growth. Learning from experienced mentors provides invaluable insights, reduces the learning curve, and fosters a mindset geared towards success.
Tip #6: Abundance Mindset
"I think the abundance mindset is crucial...a lot of times people don't take the time or take the risk to invest in themselves first."
An abundance mindset encourages proactive investment in oneself and openness to opportunities. This positive outlook fosters resilience, innovation, and a greater willingness to take calculated risks, leading to better outcomes.
Tip #7: Power of Knowledge and Education
"You can learn about the masterminds...we've got a vetting deals course that we literally just launched."
Continual learning and staying updated with industry trends and strategies are vital. Engaging in educational programs and courses helps investors make informed decisions, improve their skills, and adapt to changing market conditions.
Tip #8: Leveraging Community and Peer Groups
"We've got 130 ultra high net worth individuals that are part of it and love it."
Being part of a community of like-minded individuals offers support, shared experiences, and potential collaboration opportunities. This collective wisdom can lead to better decision-making and innovative investment strategies.
Tip #9: Generosity and Impactful Giving
"All the money would be donated to various causes but around human trafficking and the prevention of."
Committing to philanthropy and social causes not only creates a positive impact but also enhances personal fulfillment. This generosity can also inspire others and build a legacy beyond financial success.
Tip #10: Preparing the Next Generation
"We're launching Lifestyle Investor Foundations, our young adults program...for 18 to 29 year olds."
Educating and mentoring the next generation ensures the transfer of knowledge and skills necessary for future success. Initiatives like youth programs empower young adults with financial literacy, investment strategies, and the mindset needed to thrive in a competitive world.
