18: Mike Rosehart: Lifestyle by Design: Finance, Real Estate, Young Family

 Michael Rosehart is a 25 year old early retired, self-made millionaire.  Michael is a husband and father with a young family, who unlocked financial independence at the age of twenty-four through Real Estate investing and extreme frugality. He bought his first property at the age of 19 (in 2012), while still in university studying business finance, and scaled up to build a 15 property portfolio in 2017 that cash-flowed over $12,000/month (net) in London, Ontario, Canada.  Mike is obsessed with helping educate others on all things financial independence (FI), real estate, and managing it all with a young family.  This episode focuses on How to master: real estate investing, frugality, get a loan regardless of rejections, financial independence and living well.


Favorite Success Quote

“Go ahead and go get it!”

“Those that fail to plan, plan to fail.”

Key Points

1. Develop Confidence Through Action

Be willing to go through hard times to build up your confidence.  Execute on what you plan.  Take calculated action.  Your confidence will build as you go through the murky waters of business.

2. Be Patient

There was a period of 2 1/2 years between investing in his first property and his second property.  He used this time to become hyper focused on financial independence.  He biked to work.  He fixed up his first property.  He learned how to become extremely frugal.  Focus on reducing your living expenses.

3. Get Hired In Your “Dream Job” Before Pursuing Entrepreneurship

Be willing to work your dream job.  Be humble, learn, and observe.  If you do not like your “day job”, take action at that point and learn how to become financially independent.

4. Find Ways To Motivate Yourself

Take time every two weeks to acknowledge your incremental accomplishments and improvements.  This will give you the extra push to go even harder towards your financial goals.  Mike was saving virtually everything he earned, and would check his net worth bi-weekly when he would get his paycheck.  This gave him motivation for the long haul as he saved up for his investment property.

5. You Have To Take Some Risk In Order To Get A Better Return When Investing

No matter what you invest in, there’s going to be a certain level of risk.  Be willing to take calculated risks (avoid speculative investing).

Good debt: tide to an asset that is appreciating, and 2) it creates cash flow that is greater than the interest cost on the debt (it has to be self-serving).

6. Educate Yourself, For Free

You should aim to invest in yourself frugally.  Seek free information when possible.  For financial information: biggerpockets.com has great guest posts and articles.  Listen to Biggerpockets podcast.

7. Banks WANT To Lend Against Real Estate

Real estate is an easy way to access to the power of leverage.  Leverage can make your return on investment (ROI) 5 to 1.  For example, if you’re making 10% return on asset on a RE property and you lever up 80% loan to value so you put a 20% down payment, than your dollar is going 5x.

Heart Healthy Hustle Round

Heart: What is your favorite activity for activity for caring for and for strengthening your internal character?

Watch a lot of motivational content.  Michael finds that this can help him facilitate an attitude of gratitude and live with a positive mindset.  We can all work together to get ahead.

Health: How do you maintain your physical health?

Initially renovating properties gave Mike an opportunity to work his muscles and stay fit.  He would work on his properties after his work day.  Now Michael focuses on biking.  He enjoys body weight exercise as well.  During some of Michael’s larger rennovation projects, he was sleeping only 3 hours per night.  He pushed his body past the point of what is healthy.  He ended up hospitalized due to sleep deprivation.  He figured he could sacrifice a little health for alittle extra money.  Looking back, Michael does not recommend anyone take this path.

Hustle: What is your main motivation for hustling to the max of your potential?

Your why is important.  Michael’s why is financial independence so he can be there for his family.  Growing up his parents were not home much because they had to work a lot.  When Michael’s wife got pregnant with their precious daughter, that is what motivated Michael to really grow his real estate empire.  He had over 20 properties before tapering off to a more comfortable level of 6 properties.  Giving back is the 2nd ‘why’ for Michael.

How Do You Avoid Burnout?

Batch work.  Try working hard non stop for 16 hours, than taking 16 hours off.  Work smart and work hard.  Working smart will facilitate a financially independent lifestyle.  Be willing to hire others to do things you do not need to do.  You will do much better and accomplish much more.

If You Had 60 Seconds With Your 20 Year Old Self, What Would You Say?

“Right now you don’t realize it, but you’re going to be very successful in five or six years if you just stay on the grind.  It’s going to be painful, but you’re going to break through and it’s going to be beautiful.  Two Things: 1) DON’T be a lone wolf.  Reach out to more people.  You’re only twenty years old, and right now you think you know it all, you don’t.  You need to go out there and meet people in the local community because if you had made those connections that much sooner, you’d be that much further ahead.  Branch out and network.  2) Take it easy on your health.  You’re going to push yourself beyond your limit, and you’re going to pay the price for that.  Hire some of that out.  You’ll still be successful.  Stay the course, and you’ll make it through.”

What Are Your Two Greatest Achievements?

  1. Retiring and reaching financial independence by the age of 24.
  2. Family is very important.  Michael’s daughter Emma is another one of his greatest achievements.

Influential Books

Early Retirement Extreme  by Jacob Lundfisker

The Intelligent Investor  by Benjamin Graham

More on Mike

Michael’s YouTube Channel

How to Contact Michael:

Facebook Group: https://www.facebook.com/groups/23242…

Michael’s Blog: http://www.25andfree.com/

Facebook: https://www.facebook.com/mrosehart/

Instagram: http://www.instagram.com/mikerosehart

Twitter: https://twitter.com/MikeRosehart

Bigger Pockets: https://www.biggerpockets.com/users/m…


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