6 Steps to Wealth Through Real Estate, with A. Donahue Baker

We have an exciting conversation for you today! Our guest is A. Donahue Baker, a real estate developer and investor. In this episode, we talk about the 6 steps to build generational wealth, how to make smart money decisions, and a new way to get funding for your real estate deals. Join us and start building generational wealth today!

Learn more about A. Donahue and his journey at reiclarity.com!

“I just wanted to do one deal a year. The idea was, I would always make more money this year than I did the previous year. And I've done that for about 20 years now.”

 

03:09

Donahue grew up in a middle-class family and he was always very entrepreneurial. He found multifamily real estate investing by accident and realized that it was his true passion.

 

Donahue’s advice when it comes to becoming successful in real estate investing is to always have a clear, specific goal. From that, you can work your way backward and break up the process into bite-sized pieces.

“In this country, in order to build wealth, you need to have access to capital. And that goes hand in hand with debt.”

 

14:33

Donahue shares his 6 steps to generational wealth creation.

 

“The basement”. Over 70% of Americans are living paycheck to paycheck. The focus on this level should be to get out of debt. Level 1. Focus on earning at least $100k a year. In A. Donahue’s experience, that is the amount of money that provides financial security and a good foundation to create true wealth over time. Level 2. The number 1 expense in most people’s life is their rent or mortgage payment. If you can create a “rent-free” lifestyle through house-hacking then you can save up a lot of money fast. Level 3. Bring your personal credit score to 720 and lock it. Then separate your personal and business life by creating an LLC and start to live exclusively through your business. Level 4. Acquire $1M in good debt. This means mortgages that pay for themselves by your tenants. Level 5. Over time this $1M turns into equity. As the final step, you need to structure how you can pass this wealth on to your children or heirs. You can set up trusts and life insurance.

 

Donahue started a bank, Money Avenue, where he plans to reform the banking system. They help investors to fund their deals. As opposed to syndication, the debt comes from a banking structure and the down payment comes from the JV.

“Each deal has its significance. It's not all about the money, some deals are just going to be your resume builder.“

 

36:35

At the end of the episode, A. Donahue picks an action step from the REI Clarity Framework that is the most valuable to him. This is “Forecast Your Future”.

 

Donahue’s advice when you're thinking about acquisitions, is to start working on your next deal while you’re closing the current one. It’s important to plan ahead and have a strategy for your upcoming deals.

Mentioned in the show:

https://adonahuebaker.com/ https://preview.moneyave.com/wp/ His LinkedIn www.shineinsurance.com/reiclarity The REI Clarity Framework

Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity. 

 

Special thanks to A. Donahue Baker for taking the time to share so many great insights with us   If you enjoyed this podcast, there’s a couple of things we need you to do right now:    SUBSCRIBE to REI Clarity on Apple Podcast, Spotify, or wherever you listen to podcasts    While you there, please RATE & REVIEW the show    SHARE with friends   Finally, please, JOIN the REI Clarity Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

Need the REI Insurance Guy?

More great stories & information at:

Youtube – Blog – Podcast