How the Rich Use Debt to Build Wealth

Рет қаралды 1,018

Ай бұрын

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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Topics discussed may include predictions, estimates or other information that might be considered forward-looking and results are not guaranteed. Prior performance does not guarantee future performance. This is not individual investment, legal, or tax advice. Investments carry risk and can lose value. Make sure to complete your own due diligence and work with licensed investment, tax, and accountant professionals when making financial decisions. Financial Freedom 101 is not responsible for any of the financial decisions that you make. Financial Freedom 101 typically has investments including, but not limited to positions in diversified ETFs and mutual funds such as SPY, VOO, SWPPX, FXAIX and others which may contain holdings in the companies discussed. The content of this video is for entertainment purposes only. Topics discussed and opinions provided do not represent any of my employers and are only personal opinions.

Пікірлер: 16

@danielowen9746 Ай бұрын

Can you do a video on calculating quarterly tax payments to IRS from investment income

@AusWash Ай бұрын

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?

@financial_freedom101 Ай бұрын

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.

@aweighout Ай бұрын

Great info. Thanks so much. Makes great sense. Your videos are so informative and well said.

@financial_freedom101 Ай бұрын

Thanks for watching!

@Lydia-is6cv Ай бұрын

Great！ 👍👍👍

@financial_freedom101 Ай бұрын

Thank you 👍

@Net-Wit Ай бұрын

Great video, I've heard of this before but this video really made it click. Subbed.

@financial_freedom101 Ай бұрын

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.

@Net-Wit Ай бұрын

@@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!

@tr3b0r123 Ай бұрын

Nice vid as always! Are you a CPA by any chance?

@financial_freedom101 Ай бұрын

Not that one yet, I have a few other licenses.

@LawrenceTimme Ай бұрын

This is like a self pyramid scheme where you think you're rich then get massively screwed over.

@financial_freedom101 Ай бұрын

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.

@daryls7656 Ай бұрын

My broke friend was a paper millionaire once, he pukes this rhetoric all the time.

@financial_freedom101 Ай бұрын

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.