Do you own a home? Make it into an asset!
a. Robert Kiyosaki stated it before, the home you live in, is NOT an asset. If you not understand that. Does the home bring money into your pockets? If NO, then it’s a liability. If YES, then it is an asset.
b. There is a BUT. If you live in your own home, but you use the equity of your home to create more wealth, it is the kickstarter for the assets to come.
c. For example, 8 years ago, you purchased a home for 250k (monthly expenses of 900 dollars per month), current through the pandemic, and value growth, your home is valued 300k (1100 dollars . you’ve paid 50k of mortgage, your home has grown in value. If you do a refinance, you’ll have 100k free to spend. You use that 100k to invest to purchase two new homes, and rent them out. 50k per apartment, borrow 100k each, you’ll be able to buy two homes of 150k, with an income of 300 dollars net income per month. That’s 600 dollars per month. And all of a sudden, you’ve created another stream of income that makes your cost of mortgage per month less. You’ve got a net payment of 500 per month, and you’ve got 3 homes to grow in equity over time.
d. Rinse and repeat this process
