“L” = Leverage
Then comes the icing on the cake. Not only can you serve people, receive income, write off more than you make, and let the tenants pay down the mortgage as the property increases in value, but you get a huge bonus.
Leverage. Bankers allow the public to borrow 80-90 even 100 percent of the real estate value. Why is that? Because they understand that real estate is safe collateral to lend money against. It has traditionally held its value and is very forgiving in that if it were to drop in value, it is a very slow drift that usually comes back in line quickly.
Contrast that with the stock market. Do you know what the brokerage houses will lend on a stock? Usually 50% of value. That’s 50% leverage in stocks vs. up to 100% in real estate. What do the stockbrokers know? Stocks are risky. Stocks (and bitcoin) can lose huge value quickly and are slow to forgive. Leverage allows you to invest little to none of your own money and control an income-producing asset with excess tax benefits as it grows in value while the user (your tenant) pays off the debt. There ... now go find me something better.
A lot of long-time investors will tell you that the best you can expect from your rental investment portfolio over time is about a 10% return. Well for most of us 10% compounded over many years will do just fine. I’m sure a lot of you wish you could say that about your investments in the stock market. But what they don’t know is -- you can add a system to make it better than average!
Timestamps:
0:01 - Introduction - “ Real estate the I.D.E.A.L. investment, the final chapter Leverage”
0:38 - Lou’s wins of the week
4:15 - Today’s give away - Lou’s book: “ Doing Good, While Doing Well”
5:10 - A foundation helps a new member to put up money for his down payment on buying his property.
6:42 - L for Leverage - Real Estate is the I.D.E.A.L. Investment
15:02 - Aug 27th, 28th & 29th - https://www.MillionaireJumpStart.com/Lou
19:16 - Ask Lou anything about the real estate business
Questions for Lou
20:30 - With the Eviction/Foreclosure Moratorium being extended to Oct 3, how do you handle your Lease Purchase tenant buyers and your owner-financed buyers who cannot pay?
23:31 - Are we required to record the Affidavit of Trust in the County records?
24:51 - Maximum Asset Shield if I miss Thursday, will there be a chance to get it or not?
25:37 - How is the moratorium affecting this?
28:23 - Would you tell me a little more about the UWE?
30:40 - https://www.EZfixcredit.com
31:24 - Can House Joint Resolution 192 plays a part in my property purchases?
35:00 - Let say House Joint Resolution 192 can help me in my property how can I invoke it?
35:49 - Next week’s show: Mortgage Defaults Rates
If you are JUST getting started in real estate investing, you NEED to attend my ONE-DAY virtual training. I teach it LIVE over ZOOM, and it's only $1 (yes, one dollar) for SIX HOURS of solid how-to training! https://www.wealthbuilderworkshop.online
If you're ready for a more in-depth experience, then you owe it to yourself to investigate my THREE- DAY Millionaire Jumpstart Event. I host it four times a year in various locations, and you can attend LIVE and in person. I'm your coach all three days.
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