Real estate has been one of the primary investments of the wealthy for many, many years. It is also how I was able to buy back my freedom, quit my day job, get out of debt, travel the world, and create a multiple million dollar net worth.
It has been said that 90% of all millionaires have either created and or maintain their wealth through real estate investing. While not every piece of real estate is an asset or a good investment, when done correctly it can be very rewarding.
Many people assume that all real estate is an asset. But that is just not the case. The confusion comes from our educational and banking system. If you were to look at the bank's balance sheets they would have your personal property listed as an asset. And for the bank it is an asset because they make interest on the money you borrowed ( Your mortgage).
But for you... is your home an asset?
First lets define what an asset is. An asset is an investment that pays for itself and puts money in your pocket every month. Does your personal home do that? No, of course not.
This is usually where I will get the equity rebuttal. "But I am paying off my mortgage and the property is going up in value so I see that as an asset". Let's take a look at our American friends and what happened to them in 2008. If you bought a "so called" asset/home in the U.S. before the crash for $300,000 and put 5% down you would have a mortgage of approximately $285,000 ( To simplify I am just using basic numbers) Now the economic collapse hits and your asset/home value drops by 50%. The asset that you owe $285,000, plus interest and upkeep on is now worth $150,000. Ouch that is going to hurt. And unfortunately it did hurt a lot of great people that did not get the education you are receiving today...
I always buy for CASH FLOW and built in equity. This is a strategy I teach all my coaching students.
Wealthy people collect assets, the middle class collect liabilities, and the poor collect junk.
Take a quick assessment of where you are. If you like where you are in life; great...
But if not you are reading the right blog.
With coaching, a strong burning desire to succeed, a clearly defined plan, and consistent implementation, your dreams will become your reality.
Let's explore some of the many benefits to real estate investing.
Safety: When you invest based on sound education and the facts; removing all emotion real estate investing is one of the best investments you can make. If you make sure you have these 2 things on the day you buy or know how to create it quickly you will have a solid investment that will work well in any market.
1. Cash Flow: This will ensure you can sustain your investments for the long term if that is your desire. When interest rates increase your will have lower vacancy because less people can afford to buy and will need to rent. And conversely when interest rates are low you will have greater cash flow.
The key is to ensure you have a solid investment no matter what the market is doing that way you can sleep easy knowing that you are creating long term wealth.
C.A.R.E. Coaching tip: You can stress test your investment before you buy it. Let's say today's interest rate is 4%... run your numbers at a higher rate such as 6%. If the investment property still provides great cash flow at a higher rate you know you have a sound investment... (potentially). There are other variables to consider before buying...
2. Equity: You will serve yourself well by learning how to buy properties that have equity built in. Simply put another way, buy real estate assets under market value.
C.A.R.E. Coaching tip: A few quick ways to do this is to use marketing strategies to find sellers that NEED to sell; not want to sell.
Build your network of real estate whole sellers, post bandit signs in your investment areas. (these are small signs that buyers post on hydro poles that will say things like "We buy properties ca$h") Send out flyers, and post on social media.
Security: Real estate is a secure investment. People will always need a place to live. Provided you have made a wise investment in a great area it will appreciate in value while your tenants pay off the mortgage. Real estate is also not as volatile as other investments such as stocks. Real estate markets tend to rise and lower at a much slower pace.
C.A.R.E. Coaching tip: Never attempt to time the market. Simply buy a solid real estate asset that has cash flow and equity.
Control: No one C.A.R.E.S. more about your wealth than you do, so it only makes sense that you should invest your money in assets that you can control. This is yet another great benefit to owning real estate. You can improve the property and add value to the building.
C.A.R.E. Coach tip: To learn how to add value to your property and grow your real estate portfolio even faster check out www.jefferywoods.com and book I complimentary coaching call with me today. I work with real estate investors to help them start and/or scale a real estate portfolio fast... And I help them create cash flow to fund their desired lifestyle...
Duplicate: You want an investment strategy that can be easily duplicated and there is no strategy better than cash flow real estate. If you want to build residual income and grow your net worth you must focus on systems that duplicate. Consider companies like McDonalds; They are not successful because they make the world's best hamburger. They are successful because they have systems that can be taught to others. This allows them to leverage and use the power of compounding. This has also allowed them to acquire a ton of real estate throughout the world.
Leverage: What is Leverage? Leverage is the ability to control a lot with just a little. It gives you the ability to utilize more than just you. Through leverage, you can affect change much more rapidly. Leverage equals speed, or velocity. The more leverage you have, the faster your journey to wealth and freedom. Here are 7 ways you can use leverage to grow your real estate portfolio, net worth, & residual income.
The 7 Forms of Leverage
1. OPM (Other People's Money) 2. OPT (Other People's Time) 3. OPW (Other People's Work) 4. OPE (Other People's Experiences) 5. OPI (Other People's Ideas) 6. Scalable Production & Distribution (Systems) 7. Scalable Customer Base
So there you have it! That is why I have invested in millions of dollars worth of real estate and why I believe you should buy as much real estate as possible.
Until next time always remember " The More You C.A.R.E. The Less You Work"
Your real estate-based wealth coach,
P.s Whenever you are ready here are a few ways I can help you earn more money, create more freedom, and scale your real estate business
1. Join the C.A.R.E. community and connect with other real estate investors that are taking massive action. It's our new Facebook community where smart real estate investors connect, learn, and grow! Grow your wealth, Freedom, Impact, & portfolio! CLICK HERE to join today.
2. Watch this FREE training video. In this video you will discover the 2 key areas you need to work on in order to create financial independence as a real estate investor. CLICK HERE NOW to watch this video.
3. Work with me and my team privately. If you would like me to help you avoid costly mistakes and grow your real state business so that you can have the finances and time to fund your desired life let's chat. CLICK HERE to grab a complimentary strategy session. This way we can chat and get to know each other better. This is not a sales call I do NOT work with everyone. I want to see if we are a good fit and help you. If you decide you want to continue to work with me and you meet my criteria we can explore what that may look like. Because I am actively running my real estate businesses and value my free time I only work privately with a small select few every year. BOOK YOUR SESSION HERE.