How the Rich Use Debt to Build Wealth
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- Опубліковано 25 кві 2024
- How people use debt and rental real estate to build wealth and become rich. How to get rich using debt and real estate? How do people get rich in real estate? How the Rich Use Debt to Build Wealth ... (Rental Real Estate, Debt, and Tax Advantages)
Depreciation of 1-4 units is typically over 27.5 years on the buildings and does not include the land value.
1031 exchange:
www.irs.gov/pub/irs-news/fs-0...
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Can you do a video on calculating quarterly tax payments to IRS from investment income
Great！ 👍👍👍
Thank you 👍
Great info. Thanks so much. Makes great sense. Your videos are so informative and well said.
Thanks for watching!
Great video, I've heard of this before but this video really made it click. Subbed.
Thank you for the comment and subscribing. Let me know if there are any questions you have and I will try to answer them in a video. Just put it as a new comment so that it shows up as a comment I have not yet responded to.
@@financial_freedom101 Right now I am making 70,000 a year. With Only 30% of my check needing to go to needs (Rent, Food, Util) around 1,200 a month. As a 30 year old how would you allocate the rest of the funds, if you were in my position?
Thanks!
This only works if everything goes right. If you suggest having cash reserves, then why not just buy a property in cash? Can you imagine paying a lawyer bill and a mortgage on a property that’s not generating income?
I am showing how many people have been successful and this is how they made multiple millions of dollars. Most people do not have millions on hand to buy a property so people start with a loan and use the debt to own more assets faster. The cash reserves are important because even if you paid off the loan there are still taxes, repairs, etc. that the owner needs to pay. The more debt the more risk.
Nice vid as always! Are you a CPA by any chance?
Not that one yet, I have a few other licenses.
This is like a self pyramid scheme where you think you're rich then get massively screwed over.
The more leverage / debt someone has the larger the risk is that it all falls apart. The only nice thing with secured debt is that if it falls apart the properties are repossessed and that's it. If each property is held within S-Corps or LLC it also helps prevent loss due to lawsuits etc. which further limits the potential loss.
My broke friend was a paper millionaire once, he pukes this rhetoric all the time.
This is how many people do become rich using debt, but it comes with added risk. When, not if, there is a downturn in the economy and people stop paying rent and the owner does not have 1-2 years of mortgage payments etc. available then they lose the property. More Debt = More Risk.