We’re done talking about bad debt.
We’re done talking about good debt.
Let’s talk about great debt. Followers of Empowered Investor real estate investing methods probably already know that we consider great debt to be the strategy of purchasing properties with the right metrics that make sense the day you buy them. When you then rent these properties out, you allow the tenant to pay down your mortgage while you increase your net worth over time with very little risk of your own.
We call this “tenant financed debt” and over the years it has proven to be an excellent strategy for creating wealth. But there is a critical difference between the way most people do this and the way we recommend it and that small difference can make the difference between achieving financial independence or not.
Here’s the ‘okay’ way to use tenant financed debt. Let the tenants completely pay down the mortgage on properties so that, eventually the landlord owns them free and clear. After that, the monthly rents provide a nice flow of income. Cash can be raised by selling the properties.
But there is a better way. The secret to exponentially growing your portfolio lies in periodic refinancing of your loans using a minimum of your own money and rolling up into larger properties. We could explain the intricacies right here but a much better idea is for you to call 714-820-4200 and ask to speak to one of our expert investment counselors. Tell them you want the secrets to investing in real estate the right way.
