Don’t Live Below Your Means; Expand Your Means
Your time, energy and mental bandwidth are limited. Don’t use them to live below your financial means. Instead, expand your means. When you try to live below your means, you can only cut so far to the downside and you’re living worse anyway.
How You Can Profit From OTHER Peoples’ Money (Ethically)
Do you work for money or make your money work for you? You know what? It doesn’t matter. You won’t create wealth until you do THIS instead.
Why I DON’T Want You To Be A Millionaire
Don’t be a millionaire. You’re thinking too small. A million is just one thousand times one thousand. There’s nothing magical about a million-dollar net worth. At just a 4% inflation rate, a million dollars will be whittled to just $308,000 of purchasing power in the thirty years. What’s $308,000 going to get you? Two good years? Seven lean years? You need to invest in something that can make you far more than a millionaire. I discuss how.
Make Money That You Don’t Work For (Principal Paydown)
When you make a mortgage payment on your own home, a portion goes toward principal paydown. However, YOUR WORK went into making that payment. With income property, YOUR TENANTS’ WORK made the principal paydown for you (they also paid your interest and your cash flow). In Year 1 of your income property ownership, you often have about a 4% rate of return just from tenant-made principal paydown. This is one of only five ways you’re typically simultaneously paid as a real estate investor! 1) Appreciation 2) Cash Flow 3) Tenant-Made Principal Paydown (covered in this video) 4) Tax Benefits 5) Inflation-Hedging
How To Easily Remember Your Property Expenses
“VIMTUM” is an acronym that makes it easy to remember your rental property’s operating expenses: – Vacancy – Insurance – Maintenance – Taxes – Utilities – Management
Most investors remember that their largest expense is their mortgage payment – principal plus interest. VIMTUM will help you remember to factor in the other common, recurring expenses.