Hi, I’m Mike Downey, the founder of Farm Raised Capital, and I’m here to share my journey towards discovering the true meaning of wealth and how passive income transformed my life.
The Late 2000s: A Wake-Up Call
Back in the late 2000s, I witnessed the value of my employer-sponsored 401K, which represented my long-term wealth and future, plummet. The financial crisis and the housing bubble left me feeling frustrated and helpless. My financial advisor’s advice was always the same: save as much as possible, stay in it for the long haul, and rely on time. However, time isn’t something we can control, and that realization fueled my curiosity (1).
The Revelation: Wealth Redefined
My life changed when I read Rich Dad, Poor Dad by Robert Kiyosaki (2). Kiyosaki’s book introduced me to the concept of wealth as defined by Buckminster Fuller. Fuller described wealth as the ability to survive for a certain number of days into the future (3). In simpler terms, if you stopped working today, how long could you maintain your current standard of living? When I assessed my situation, I discovered I could only survive for a few months, and that was a sobering realization.
The Traditional Path: A Risky Proposition
Like many others, I followed the conventional path: go to school, get a degree, find a job, buy a house, raise a family, and try to pay off that house before retirement. No one ever taught me how to handle losing my job, company closures, or any other unforeseen circumstances that might hinder my ability to work. I realized that the financial security I believed I had was a massive risk, and my understanding of wealth needed to change.
Good Debt vs. Bad Debt: A Critical Lesson
As I educated myself, I learned about the differences between good debt and bad debt (4). For instance, my house was “bad” debt because it was an asset that didn’t generate any income. Wealth, I discovered, meant much more than just my net worth or the total value of my assets.
Creating Passive Income: The Game Changer
I decided to explore ways to create passive income to cover my essential living expenses each month. While my passion lies in farms and farmland, after extensive research, I opted to invest in commercial real estate. With fewer barriers to entry and stronger cash flow, it seemed like the perfect fit (5). My short-term goal was to achieve financial security, while my long-term goal was to leverage the equity from commercial real estate to purchase farmland – a legacy to leave for my children.
The Journey Continues: Taking Control
Since then, a lot has happened. I left a successful career in agriculture to pursue my passion for helping family farms grow and preserve their legacies. I now have control over my retirement by self-directing my IRA into alternative assets, primarily real estate. Most importantly, I have taken control of my time, focusing on my family, consulting business, and family farm.
From Survival to Legacy: Transforming Future Days
My understanding of wealth has evolved significantly, and my “future days” are no longer about mere survival. They’re about shaping a legacy for my children and their children. None of this would have been possible without passive, off-farm income – income that goes beyond a W2 pay stub.
Unlocking Your Potential: The Path to Financial Freedom
Ask yourself: How many future days could you survive? What does wealth truly mean to you and your future? My pursuit of financial security has transformed into a lifestyle of financial freedom, opening doors and creating new opportunities. It can do the same for you. By exploring passive investment in real estate, you can secure your family’s future and create a lasting legacy.
Empower Yourself: Learn More about Passive Real Estate Investing
If you’re interested in learning more about passively investing in real estate and how it could secure your own family’s future, I invite you to join the Farm Raised Capital community. We’re a group of like-minded individuals who understand the power of passive income and wealth creation through commercial real estate investments.
Our mission is to help individuals in the agricultural community create passive income and wealth in a tax-advantaged way while preserving the legacy they wish to leave behind. We focus on strong communication, hassle-free platforms, and impactful investing. We donate a portion of our profits to support young and aspiring farmers, fulfilling the mission of my consulting company, Next Gen Ag Advocates.
Visit our website (www.farmraisedcapital.com) and Next Gen Ag Advocates (www.nextgenag.us) to learn more about our vision, mission, and core values. Together, we can redefine wealth and create a brighter future for generations to come.
References:
- Investopedia. (2021). Financial Crisis of 2007-08. Retrieved from https://www.investopedia.com/terms/f/financial-crisis.asp
- Kiyosaki, R. (1997). Rich Dad, Poor Dad. Plata Publishing.
- Fuller, R. B. (1969). Operating Manual for Spaceship Earth. Southern Illinois University Press.
- Investopedia. (2021). Good Debt vs. Bad Debt. Retrieved from https://www.investopedia.com/articles/pf/12/good-debt-bad-debt.asp
- PricewaterhouseCoopers. (2021). Emerging Trends in Real Estate 2021. Retrieved from https://www.pwc.com/us/en/industries/asset-wealth-management/real-estate/emerging-trends-in-real-estate.html
