I'll cut to the chase here. All the most successful real estate investors I am honored to know personally, and to whom I look up to and admire, have successfully used the tools above with intent, discipline, and patience. Now they live a life of freedom from the daily worries of paying the bills and future retirement.
A Generational Toxic Relationship With Debt
It is unfortunate and understandable that so many US graduates graduate with astronomical debt giving them a toxic relationship with the word debt. However, used correctly and consistently, it is the most powerful wealth creation tool I know.
Create Life Changing Wealth Using Leverage, High Quality Real Estate and Time
I’ve learned through personal experience, and observing highly successful investors, that extremely subtle differences exist between the “break out” investors and how they thrive vs average real estate investors, who never really use real estate to change the “Big Picture”.
A Generational Toxic Relationship With Debt
It is unfortunate and understandable that so many US graduates graduate with astronomical debt giving them a toxic relationship with the word debt. However, used correctly and consistently, it is the most powerful wealth creation tool I know.
Create Life Changing Wealth Using Leverage, High Quality Real Estate and Time
I’ve learned through personal experience, and observing highly successful investors, that extremely subtle differences exist between the “break out” investors and how they thrive vs average real estate investors, who never really use real estate to change the “Big Picture”.
Consider The Following
They harness and scale the power and mechanics of leverage through buy and hold investing, and they dramatically outperform most other employment, fix and flip, house hacking, wholesaling strategies hands down over time.
- Why are so few real estate investors successfully creating life changing meaningful wealth?
- What philosophies do the successful investors who generate inter-generational wealth and financial freedom for themselves know and practice?
- What strategies and methodologies do they follow that most investors do not?
They harness and scale the power and mechanics of leverage through buy and hold investing, and they dramatically outperform most other employment, fix and flip, house hacking, wholesaling strategies hands down over time.
Working & Investing Simultaneously
Earning Money Personally
With some exceptions, most of us go to work and pay substantial tax on our W2 income. You are the earner, and unless you have employees you are not scalable. Inflation and lifestyle changes often eat up your gains, and you save too slowly. Finally at some point you have that “aha moment” and realize “earning money and saving” is not enough. While having some substantial savings is nice, it only allows you to now “play the game”.
True Wealth Creation
Scaling and harnessing investment mortgage debt, inflation, and the efforts of as many others as possible, as they pay off your debt is wealth creation. Debt converts to equity over time. Wealth creation is scalable. You do not pay significant W2 income tax on wealth creation. It is created slowly over time, and when scaled up, can be significant. One can borrow against your gains at any time “tax free” for those big life expenses when they come along, and again your tenants will pay that new debt off also. Equity = Wealth.
After a Lifetime Working Flipping Houses What Have I Learned About Leverage?
I understand that my early concepts about generating meaningful wealth were completely lacking the right vision and sophistication. I thought I was doing great “fixing and flipping”, buying and renovating houses in considerable volume. I shied away from debt and leverage. I thought I was on the right path to wealth. I thought debt was bad or a nuisance … little did I know I was actually only on the first rung to creating meaningful wealth. Wealth is created by holding, not selling,
With some exceptions, most of us go to work and pay substantial tax on our W2 income. You are the earner, and unless you have employees you are not scalable. Inflation and lifestyle changes often eat up your gains, and you save too slowly. Finally at some point you have that “aha moment” and realize “earning money and saving” is not enough. While having some substantial savings is nice, it only allows you to now “play the game”.
True Wealth Creation
Scaling and harnessing investment mortgage debt, inflation, and the efforts of as many others as possible, as they pay off your debt is wealth creation. Debt converts to equity over time. Wealth creation is scalable. You do not pay significant W2 income tax on wealth creation. It is created slowly over time, and when scaled up, can be significant. One can borrow against your gains at any time “tax free” for those big life expenses when they come along, and again your tenants will pay that new debt off also. Equity = Wealth.
After a Lifetime Working Flipping Houses What Have I Learned About Leverage?
I understand that my early concepts about generating meaningful wealth were completely lacking the right vision and sophistication. I thought I was doing great “fixing and flipping”, buying and renovating houses in considerable volume. I shied away from debt and leverage. I thought I was on the right path to wealth. I thought debt was bad or a nuisance … little did I know I was actually only on the first rung to creating meaningful wealth. Wealth is created by holding, not selling,
Money Doesn’t Grow on Trees!
Did your parents remind you frequently that “money doesn’t grow on trees” I know mine did?
However I now understand that money does actually grow when you substitute the word “trees”. I have empirical evidence that money does grow on “well-chosen B+ high quality leveraged single family homes held over the long term in a market with significant growth”.
Did your parents remind you frequently that “money doesn’t grow on trees” I know mine did?
However I now understand that money does actually grow when you substitute the word “trees”. I have empirical evidence that money does grow on “well-chosen B+ high quality leveraged single family homes held over the long term in a market with significant growth”.
We all Know This Stuff. What is New Here? My Take on all of This!
The simple difference between the truly wealthy breakout investors I talk to, versus average and pedestrian investors is so simple its mind boggling to me, and a huge lesson in my life.
Wealthy people take these simple concepts and scale them. They do not buy one or two houses. They understand the value and power of leverage and time. They get big enough, and understand what big enough means to make a consequential difference in their futures.
Scale Your Way to Wealth
From thousands of conversations with investors I’ve had, the majority do not actually know “their actual goal” , they do not have “a long term strategy” They do not have a final destination. Yes they do tons and tons of training and research, and in my experience come away more confused than when they started. Over researching the wrong stuff can cause many to suffer from shiny object syndrome, when in fact successful investors share the following super simple traits.
The simple difference between the truly wealthy breakout investors I talk to, versus average and pedestrian investors is so simple its mind boggling to me, and a huge lesson in my life.
Wealthy people take these simple concepts and scale them. They do not buy one or two houses. They understand the value and power of leverage and time. They get big enough, and understand what big enough means to make a consequential difference in their futures.
Scale Your Way to Wealth
From thousands of conversations with investors I’ve had, the majority do not actually know “their actual goal” , they do not have “a long term strategy” They do not have a final destination. Yes they do tons and tons of training and research, and in my experience come away more confused than when they started. Over researching the wrong stuff can cause many to suffer from shiny object syndrome, when in fact successful investors share the following super simple traits.
Conclusion - 4 Must have Traits to be a successful Real Estate Investor
Clear Income and Net Worth goals based on real future needs. This is the very first step to success, acknowledging your needs and how to pay for them.
A Defined leveraged strategy to achieve those goals and letting nothing, not even market conditions get in the way. We are often our own worst enemy. A defined strategy will help us deal with our emotions.
Discipline to implement the strategy. Stick with it and see it through to its logical and financially rewarding conclusion.
TIME. Yes, the one commodity we cannot buy. Real estate works overtime. I often say we look like fools the day we buy a home and geniuses 20 years later when its paid off, generating unencumbered income and has doubled in value.
Clear Income and Net Worth goals based on real future needs. This is the very first step to success, acknowledging your needs and how to pay for them.
A Defined leveraged strategy to achieve those goals and letting nothing, not even market conditions get in the way. We are often our own worst enemy. A defined strategy will help us deal with our emotions.
Discipline to implement the strategy. Stick with it and see it through to its logical and financially rewarding conclusion.
TIME. Yes, the one commodity we cannot buy. Real estate works overtime. I often say we look like fools the day we buy a home and geniuses 20 years later when its paid off, generating unencumbered income and has doubled in value.
