5 Years to Financial Freedom with Pete Schnepp

For those who have a keen interest in financial freedom through real estate, the name Pete Schnepp is synonymous with success. Based in Phoenix, AZ, Pete is a veteran real estate entrepreneur, marking his footprint in the industry since 2007. This full-time businessman wears many hats, including running a painting, roofing and pest control business. Yet, his prime passion remains tied to real estate, where he has undoubtedly proved his mettle. 

5 Years To Financial Freedom With Pete Schnepp

For those who have a keen interest in financial freedom through real estate, the name Pete Schnepp is synonymous with success. Based in Phoenix, AZ, Pete is a veteran real estate entrepreneur, marking his footprint in the industry since 2007. This full-time businessman wears many hats, including running a painting, roofing and pest control business. Yet, his prime passion remains tied to real estate, where he has undoubtedly proved his mettle. 

When it comes to Pete’s real estate journey, it is a tale of grit, strategic thinking, and dogged determination. Today, Pete has 17 properties with an impressive 40 doors under his portfolio. The intriguing fact to ponder here is that Pete has managed to build this envious portfolio single-handedly, an outright testament to his striking dedication and commendable efforts. 

While most real estate investors may feel content with an established property portfolio, Pete stands out for his unending pursuit of growth and excellence. His choices reveal a knack for spotting profitable opportunities. Pete’s strategy reflects an ability to diversify and utilize multiple avenues for procuring properties, whether through auctions, brokers, or off-market deals. 

For people eager to delve into real estate or those striving to make their mark, Pete’s journey offers aspirants a wealth of inspiration and valuable lessons. Above all, Pete’s story underscores the power and potential of handing the reins of your financial journey into your own hands.

Want to learn more about his journey? Visit his website at PeteSchnepp.com, where Pete lays bare his business pursuits and offers avenues for interested individuals to reach out to him.

But first, if you want financing for your next investment and want to know what type of collateral may be involved, click the link below for a free strategy call with our mortgage team at LendCity to discuss your specific situation.

The Path to Financial Freedom

Welcome to another episode with Dave Debeau, your host for the journey to financial independence, with the insightful guest, Pete Schnepp, who has carved out an enviable path to financial freedom. 

Today’s episode is titled ‘5 Years to Financial Freedom’ and provides practical strategies and inspiring advice. Who can better guide you on the path to financial freedom than someone who has chosen their journey meticulously and achieved financial independence his way? That is, Pete Schnepp. Let’s listen to his incredible journey to realize that financial freedom is not a distant dream but a well-calculated plan away. 

What does financial freedom mean to Pete? It all boils down to two keywords: passive income. Pete will share how he discovered its power and used it as a tool to loosen the chains of financial dependency and strive toward independence. 

This episode will introduce you to Pete’s financial struggles and the sacrifices he made. Living below their means, Pete and his wife aggressively saved and self-financed all their properties. It’s the foundation of their solid financial structure. 

You will also get to explore how they tapped into real estate to build long-term wealth. Pete will share his strategies for finding profitable real estate deals and how you can do the same. 

Remember, overcoming challenges is a part of every success story. Pete will recount him and demonstrate how he stayed motivated. 

And finally, Pete will wrap it up with key takeaways for everyone striving to achieve financial freedom. Tune in and prepare your notes because you are about to take charge of your financial future!

Pete’s Early Financial Struggles

If you’re sitting there thinking that financial freedom is a smooth path paved only for the privileged few, Pete Schnepp’s story will challenge that thought. This full-time businessman with a painting, roofing, and pest control business is now a real estate mogul. However, his initial journey into real estate was far from smooth sailing. 

During his early days in the industry, which dates back to 2007, Pete faced his fair share of financial hurdles. After getting inspired to dive into real estate by reading “Rich Dad, Poor Dad” in college, Pete decided to attempt financing properties on his own, resulting in a considerable personal burden. The challenge amplified when he reached his 10th mortgage. 

Despite these obstacles, he saw potential in the housing market and took the risk of renting out properties. But negative cash flows knocked on his door. This meant that his income from renting these properties couldn’t offset the mortgage payments, taxes, and maintenance costs he had to shoulder. Many would see this as a reason to back out, but Pete saw it as a reason to recalibrate his strategy. 

Looking back, Pete now knows these early struggles were necessary. They gave him the insights he needed to improve his methods and push towards his future success in real estate. Through these experiences, he realized that self-financing properties were not the most sustainable strategy, and it was time for him to take a different approach. 

Key Learning: The road to financial freedom is not always smooth, and struggles are part of the journey. Keep an open mind and look at challenges as opportunities for growth, just like Pete Schnepp did.

Discovering the Power of Passive Income

Once Pete Schnepp enrolled in college, a life-altering moment came when he picked up a copy of the book Rich Dad, Poor Dad. The concepts and principles presented within these pages set the stage for Pete’s journey into passive income. 

Contrary to the challenges associated with active income, passive income allowed Pete to generate money without being intricately involved in a busy job. The concept of money working for the individual rather than the individual working for money appealed to him sincerely. 

The idea was fascinating and had immense potential. Passive income could provide the financial freedom he desired, and possibly leading a life not dictated solely by paychecks was liberating. 

Learning about passive income might make you wonder why everybody isn’t doing it. It’s rarely an easy path, but it’s potentially rewarding. The tricky part is finding the correct method that suits your lifestyle, mindset, and resources. 

One such path which Pete discovered was real estate investing. He realized that investing in real estate was a powerful tool for generating passive income. It provided a tangible, stable asset that could appreciate over time, providing both immediate passive income in the form of rents and longer-term capital growth. 

The idea of being a passive investor attracted Pete more towards real estate investing. He envisaged the potential opportunity to partner with other real estate investors who wanted to get into the game but didn’t have the knowledge or the time. This was when Pete Schnepp discovered the true power of passive income and set his sights on learning more about real estate investing.

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Building a Strong Financial Foundation

Pete Schnepp’s first and most crucial step toward achieving financial freedom was building a resilient monetary base. As he shared with Dave Debeau, financial security didn’t come overnight. Pete and his wife embraced a less extravagant lifestyle, spending significantly less than they earned, and dedicated many years to diligent saving. 

Pete’s early financial strategy couldn’t be more precise. He and his wife aimed to build a sturdy financial foundation, with their sights set on long-term wealth creation, mainly through real estate. Instead of living large, they systematically saved and lived well within their means. A windfall or inheritance didn’t prompt their move into property investment; it was a calculated decision supported by substantial savings. 

Instead of paying a mortgage immediately, Pete opted for a notably different approach. He saved the equivalent of his mortgage payment in a separate account. With this strategy, he wasn’t just simulating the financial commitment a mortgage requires but also building a sizable reserve of funds. Over time, this savings account became a significant nest egg, allowing him to invest in real estate safely.

In addition to his mortgage savings, Pete cultivated another crucial financial habit. He made sure always to have 12 to 18 months’ worth of potential mortgage payments readily available in a separate account. This buffer provided a safety net for any unforeseen expenses or drops in rental income, contributing to the strength of Pete’s economic foundation. 

Pete and his wife’s financial discipline and forward-thinking made it possible for them to self-finance all their properties. They navigated the real estate investment environment without external financial aid. This hands-on approach earned Pete his financial independence. 

Pete’s story teaches that financial freedom is achievable but requires purpose, planning, and perseverance. His strategy may not have been rapid, but it was robust and resilient. Building a solid financial foundation is crucial to any journey toward financial freedom. It’s the platform upon which all other investment decisions are made and risks are assessed.

Pete’s strategic approach to finance led to the growth of his profitable real estate portfolio, which we’ll discuss in the next section.

Investing in Real Estate for Long-Term Wealth

As Pete Schnepp’s financial journey progresses, it’s impossible to ignore real estate investment’s instrumental role in acquiring long-term wealth. Dave Debeau, the host of the Property Profits Real Estate Podcast, describes Pete’s real estate strategy as a calculated and persistent plan for building sustainable wealth. 

Pete Schnepp got serious about real estate over a decade ago. After buying a primary home, he quickly realized the potential of investment properties. Not one to let opportunities pass, he purchased his next property, a small condo, shortly afterwards. 

From these humble beginnings, Pete’s real estate portfolio expanded. However, Pete and his wife have permanently opted for a self-financing approach, unlike many other real estate investors. Living below their means and saving aggressively, they’ve managed to finance all their properties. This offers them unparalleled control, allowing them to invest on their terms and reap the rewards independently. 

For Pete, investing in real estate isn’t about quick, short-term profits. Instead, he advocates a long-term perspective. It’s about patiently building a strong, sustainable financial foundation, brick by brick. This strategy may require patience, but its rewards are dependable and often far surpass those of more volatile, short-term investments. 

His reading of “Rich Dad, Poor Dad” during college sparked this courageous path to long-term wealth, a celebrated book that extols the virtues of financial literacy and independence. Since then, Pete has embodied the book’s values, achieving considerable success as a self-reliant real estate investor

Equally important to note is Pete’s recent transition from being an active partner to working with real estate investors. Selling his first property last year and reinvesting the profits into another property, Pete has shown that he knows how to leverage his resources for maximized gains strategically. 

Pete shares his story to inspire others to consider real estate a viable avenue for long-term wealth. As he’s shown, with careful planning and a readiness to learn, lasting financial freedom is achievable in real estate. 

Pete’s Strategies for Finding Profitable Real Estate Deals

With his extensive experience in the real estate industry, Pete Schnepp has devised effective strategies for identifying profitable real estate deals. His arsenal includes his licensed real estate agent status and access to Multiple Listing Services (MLS), wholesalers, and auctions. But his endeavours aren’t confined to formal channels; he also purchases lucrative properties off-market. 

Benefitting from a Licensed Real Estate Agent Status 

As a licensed real estate agent, Pete is privy to crucial information about properties before they hit the public market. His access to the MLS allows him to view properties listed for sale within a particular region before the general public sees them. He can spot potential deals early, giving him a competitive advantage. 

Utilizing the MLS and Wholesalers 

Pete also uses wholesalers as another way of finding properties. Wholesalers, often buying properties below their market value and quickly selling them for a profit, provide Pete with a steady stream of potential investment opportunities. Moreover, he actively leverages the MLS to spot attractive properties needing investments – a trick of the trade that has paid off. 

Exploring Off-Market Deals 

Off-market deals are yet another profitable avenue Pete exploits. These are properties that are not publicly advertised. By establishing a solid network and reputation in the real estate industry, sellers often approach Pete before properties are officially listed. These deals enable him to negotiate directly with the seller, simplifying the process and often resulting in better deals. 

Auctions and Brokers 

Never one to miss a good opportunity, Pete also pursues properties available via auctions and brokers. Auctions can provide fantastic bargains, especially foreclosure and tax lien properties. As for brokers, they have diverse portfolios of properties, proving to be a rich source of potential investments for Pete. 

With these strategies and his new goal of focusing on potential partners for funding, Pete Schnepp is set to continue expanding his impressive property portfolio. His strategies are practical, tried-and-tested approaches that can serve as valuable guideposts for aspiring real estate investors.

Overcoming Challenges and Staying Motivated

Pete has not been untouched by trials and tribulations in the journey to financial independence. There were times when the challenges seemed impossible, such as when Pete hit a bottleneck with ten mortgages and had no clear way to move forward. 

In Pete’s case, financing properties was a significant obstacle. The conventional banking system only allows up to ten mortgages, and Pete had reached this limit. It seemed like a dead end, but rather than giving up, Pete found other ways to overcome it. 

His solution was to start working with smaller banks and portfolio lenders. These lenders may charge higher interest rates, but they offer more flexibility. It was an unforeseen challenge that required creativity and persistence for Pete to overcome, but it also broadened his understanding of real estate financing and opened up new opportunities. 

Another challenge that plagues even experienced real estate investors is finding worthwhile deals amidst low inventory. According to Pete, finding deals and securing enough capital for investments are the twin challenges at the heart of real estate investing. 

Pete is a capital raiser who leverages his licensed real estate agent status to overcome these hurdles. He acknowledges the fact that the current market condition does not offer a lot in terms of inventory. Still, instead of seeing this as a setback, he refocused his strategies to adapt.

Pete’s current targets are wholesalers, the MLS system, and off-market deals, which he believes will yield profitable opportunities. His plans in the next 12 months involve looking for more deals while relying on his network and the potential for distressed market conditions. 

Pete knows that success is not just about overcoming challenges but maintaining motivation. He believes in long-term wealth building through real estate, which drives him. The allure of financial independence and the ability to shape his destiny keeps him motivated amidst obstacles and setbacks. 

Thus, Pete’s story shows us that the path to financial freedom is not without its hardships, but with resilience, flexibility, and unyielding determination, these challenges can be surmounted. This is an essential takeaway for anyone embarking on their journey towards financial freedom.

Conclusion and Key Takeaways

In this enlightening discussion with Pete Schnepp, we learned much about the journey toward financial freedom. His experiences and insights offer invaluable lessons for those seeking to secure their financial future. 

  • Initial financial struggles are a part of the process: Pete’s early struggles with finances were a catalyzing force in his journey. These experiences shaped his understanding of the importance of financial freedom and fueled his drive to achieve it.
  • Passive income is vital: Pete discovered the power of creating passive income flows to build a solid financial foundation. This strategy allowed him to relieve immediate financial pressures and focus on long-term wealth generation.
  • Capital challenges can be overcome: One of the main obstacles Pete faced was finding sufficient capital for meaningful investments. He managed to navigate this by working with smaller banks and portfolio lenders, albeit charging higher interest rates, providing much-needed flexibility.
  • Real Estate Investment: Pete stressed the importance of long-term wealth building through real estate investment. He underlined the necessity of investing wisely and patiently to reap substantial rewards in the long run and weather potential storms like the 2007-2009 real estate crisis.
  • Effective strategies for finding profitable real estate deals: Pete shared various designs for finding good deals. From benefiting as a licensed real estate agent and utilizing the MLS and wholesalers to exploring off-market sales, auctions, and brokers, these tips could serve as a roadmap for aspiring real estate investors.

Despite facing several challenges, Pete’s persistence and resolve were critical to his success. The strategies and insights he shared in this discussion can serve as invaluable guideposts for anyone on the path to financial freedom. Remember, it might not always be a smooth journey, but as Pete Schnepp showed us, with resilience and determination, it is undoubtedly an achievable goal.

If you are ready to start investing today and want more information about how your mortgage may be secured – or are looking to apply for a mortgage today – click the link below for a free strategy call with our mortgage team at LendCity today.

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