Myths abound in our current space. You can blame legacy media outlets, mainstream pundits, academia, and broader conventional wisdom for the prevalence of long-standing myths throughout modern society.
Practically every field has been infected by this. Wealth-building has been no exception to this trend.
One of the most notable myths is concerning debt.
Most Americans have been led to believe that debt is categorically bad and that you should never accumulate it. This is the Dave Ramsey approach to dealing with debt.
We don’t have anything against Ramsey. His strategies are great….. For normal Americans going through the 9 to 5 grind.
But for income property investors, this strategy is as suboptimal as it gets.
We’ll be the first to say that consumer debt is a big no-no.
That stuff adds no value for you and doesn’t grow a portfolio like the way real estate-related debt does.
Real estate debt is a whole different ball game, however.
When people generally talk about real estate, they only fixate on the appreciation of housing.
However, they generally ignore the benefits of taking on debt to acquire housing.
During the times of mass inflation, especially in the present, debt goes down in value.
This is the benefit of taking on a mortgage.
The thing is that you don’t want to be paying off the debt yourself.
Instead, you want to outsource the obligation of debt repayment to tenants.
This is what’s called self-liquidating debt. It’s at the core of wealth-building strategies.
Income property is the real deal, folks.
No business can capture 30% to 40% of a person’s income with the exception of housing.
It’s amazing how many people still hold aversions towards real estate investing.
The thing is that there’s a large degree of debt phobia that exists among the public.
But it doesn’t have to be that way.
One of the biggest red pills in wealth-building is the ability to align your interests with governments and central banks — the two most powerful forces in the universe — to build wealth.
While economic affairs are very screwed up at the moment, let’s not adopt a victim mindset.
P.S. At the Empowered Investor Pro, Jason Hartman and his team of experienced income property investors go into how you can use debt as an instrument for wealth building and maximizing your return on life.
It’s the ultimate ninja hack to grow your wealth.
The majority of financial “experts” and wealth pundits won’t ever mention this. And that’s why many folks remain stagnant in their financial journey.
Want to avoid stagnation and actually get serious about building a solid real estate investing portfolio?
Join Jason Hartman and the next generation of income property investors here.
