On a recent episode of the Creating Wealth Show (#174), Jason returned to the idea of investing in Packaged Commodities. Regular listeners know that when Jason uses that term he is referring to a house or other sort of structure sitting on land. After all, what else is a house but a collection of basic commodities like copper, lumber, petroleum products, lead, glass, steel – you get the picture.
What you may not have considered is that the law of supply and demand is heavily on the side of the income property investor. Quick review: as supply diminishes and demand increases, what happens? Price goes up. How does this help you?
Estimates say the earth’s population will double in a little over 60 years. That’s an incredible opportunity for Packaged Commodity investors. Growth like that guarantees soaring value for finite basic commodities, especially houses. They’re not inventing new land and it’ll be awhile before we start colonizing other planets, so where does that leave you? Here’s where – raising rents for the income properties you own, purchased at a fixed interest rate, and floated on the back of a 30 or 40 year mortgage.
Here’s something else to consider. Buying Packaged Commodities in the form of a building or structure allows you to get them at half what you’d pay on the commodities market. Then you can rent them out. Ponder that for a moment. You can borrow money from a bank to purchase commodities, then rent them out for cash flow to cover the loan payment and THEN you own them outright years from now having done nothing but recognized the opportunity.
That’s how to get rich from the high birth rate.
The Creating Wealth Show
