Taking on debt is not a problem. Not being able to
repay debt is an issue, meaning cashflow management is a critical part of
wealth creation.
And it’s important to understand the three types of debt
· bad debt against
depreciating items;
· necessary debt,
such as the non-tax-deductible debt against your home; and
· good debt against
appreciating assets like income-producing residential real estate.
Successful investors have a long-term strategy to
grow their wealth and use the correct asset protection and finance structures
as well as insurances to mitigate their risks.
Strategic investors not only buy properties, but
they buy themselves time to ride out the cycle by having financial "cash flow”
buffers in place in facilities such as offset accounts.
Wealth is the transfer of money from the impatient
to the patient. I must thank Warren Buffet for that quote.
The media is not there to educate you, but its job
is to get you to click on their links so that they receive revenue from their
advertisers.
So don’t rely on the media for investment strategy or advice.
RealRenta
has all the tools that a property manager has, but
less than ¼the cost of a property manager.
Join now and the cost is less than a cup of coffee a
week to manage your rental property
RealRenta also has a free vision, so why not check it
out
Jason Gwerder
Thursday, 20 January 2022