Real Estate Investment For Indie Makers
The moment the wire transfer hit my bank after selling my company in 2015 I spent it all on real estate, I always had the plan of owning houses and earning semi passive income. Real estate investments are a great way for indie makers longevity, I am surprised it is not talked about more, for me it provided:
- Semi passive income every month regardless of how I feel.
- Covers food and shelter so you can take time off to explore new creative endeavours.
- Appreciates in value and it is a stable asset, you can always sell and get back your money.
Only a very small percentage of apps stand the test of time, we are always evolving as people and it is hard to stay focused and love one business as an indie maker for xx years.
If your app is making $10k (this is an example, your target number may be different) a month and it is your first success, a good tactic to secure your career is to sell it for $400k (40x multiple), invest all cash in real estate that provides 10% yearly return and make $3.5k a month forever.
It sounds counter intuitive to “change” $10k a month for $3.5k a month, but your online business could go away any time and people that have some success underestimate how hard it is to recreate that success.
By selling your app and investing in real estate you secured being able to live a comfortable life in most places, with the freedom you gained you can take much bigger risks and maybe your next app will make 100k a month, worst case you still have your real estate and can keep being your own boss for the rest of your life and take advantage of the benefits I mentioned before.