CW Blogcast 14 - Two stages of wealth creation. - a podcast by Jason Hartman with Ben Carson, Noam Chomsky, Robert Kiyosaki, John McAfee, Brian Tracy, John Sculley, Thomas Sowell, Pat Buchanan, Jim Rogers, John Gray, Harry Dent, Bill Ayers, Steve Forbes, Daniel Pink, Todd Akin, Meredith Whitney, Denis Waitley
from 2013-04-20T01:00
Buying real estate for investment purposes can seem like a big chunk of information to digest if you look at it all at once. Let’s break it down into more manageable bites. The simplest part is Stage 1. During this time your primary focus is to stock up on debt. You want lots and lots of debt attached to high-quality, fixed-rate, long-term, investment grade debt.
More specifically, you want this debt attached to packaged commodities, basic materials that are in high demand when used to construct structures like houses and apartment buildings. You want lots of this kind of debt because, when you invest in real estate the right way, debt is your asset. Debt is what will protect you from the ravages of inflation and, by the way, make you very wealthy as time goes by.
Now it’s time to enjoy increasing rents, appreciation, tax savings, and let our “Refi ‘Til Ya Die” strategy make you financially free. This part is Stage Two. See how simple this income property investing really is?
When you buy real estate, the cost of the commodities used to build the structure is locked in until the house falls down. This could be 60 years or more. In the meantime, you’re refinancing every seven years and pulling out large chunks of equity from your investments. Let it replace your working income while you buy more real estate!
Further episodes of The Creating Wealth Show Blogcast