I became a millionaire at 28.
- No network
- No inheritances
- No six-figure salary
You think you'll get there by saving.
But I used Dave Ramsey's 4-letter word: DEBT
Here are the 6 reasons why debt is the path to riches:
- No network
- No inheritances
- No six-figure salary
You think you'll get there by saving.
But I used Dave Ramsey's 4-letter word: DEBT
Here are the 6 reasons why debt is the path to riches:
Your neighborhood has 6 homes for sale.
Each is $100,000.
Each can rent for $1,000.
Dave and Alan have $100k to invest
Dave buys 1 house in all cash.
Alan buys 5 with $20k down on each.
Each is $100,000.
Each can rent for $1,000.
Dave and Alan have $100k to invest
Dave buys 1 house in all cash.
Alan buys 5 with $20k down on each.
That means:
Dave makes $1,000 a month.
Alan receives $5,000 a month in rent.
Alan pays a mortgage of $4,000.
Alan makes $1,000 a month.
Dave makes $1,000 a month.
Alan receives $5,000 a month in rent.
Alan pays a mortgage of $4,000.
Alan makes $1,000 a month.
End of year, rent goes up $25 on each:
Dave now makes $1,025 a month.
Alan now makes $1,125 a month.
The following year the same happens:
Dave now makes $1,050 a month.
Alan now makes $1,250 a month.
Dave now makes $1,025 a month.
Alan now makes $1,125 a month.
The following year the same happens:
Dave now makes $1,050 a month.
Alan now makes $1,250 a month.
This continues for 5 years.
Over that time period:
Dave cash flows $63,000.
Alan cash flows $75,000+.
Why add the +?
I'm not calculating Alan's additional tax breaks for having mortgages and more homes.
Over that time period:
Dave cash flows $63,000.
Alan cash flows $75,000+.
Why add the +?
I'm not calculating Alan's additional tax breaks for having mortgages and more homes.
The housing market appreciates 3% a year for the next 5 years.
Houses are now worth $115,000 each.
Dave sells his and makes $15,000.
Alan sells his 5 and makes $75,000.
That means in 5 years:
Dave turned $100k into $178,000.
Alan turned $100k into $250,000+.
Houses are now worth $115,000 each.
Dave sells his and makes $15,000.
Alan sells his 5 and makes $75,000.
That means in 5 years:
Dave turned $100k into $178,000.
Alan turned $100k into $250,000+.
Want to make money like Alan?
I teach classes and offer consulting.
Let's work together:
realestatemaxi.com
I teach classes and offer consulting.
Let's work together:
realestatemaxi.com
Now, what about Dave's other 4-letter word RISK?
Alan has $77k more to cover risk.
If Dave has a vacancy, he makes nothing.
If Alan has a vacancy, he still cash flows from the other four.
Dave has all his eggs in one basket.
Alan has a mutual fund approach.
Alan has $77k more to cover risk.
If Dave has a vacancy, he makes nothing.
If Alan has a vacancy, he still cash flows from the other four.
Dave has all his eggs in one basket.
Alan has a mutual fund approach.
To recap:
• DEBT is not a 4-letter word
• RISK is not a 4-letter word
• DAVE is, however, a 4-letter word
Instead, use this 5-letter word:
• SCALE
for millionaire results.
• DEBT is not a 4-letter word
• RISK is not a 4-letter word
• DAVE is, however, a 4-letter word
Instead, use this 5-letter word:
• SCALE
for millionaire results.
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