In this video my mentor Dr. Marijo Wilson and I will be discussing some real estate investing basics, as well as explaining the four buckets of money!w!
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Hi, I’m Chimene Van Gundy, bestselling author and mobile home millionaire and in today’s video we’re going to share with you what is real estate investing joining me t101? oday in this video, if my mentor and coach, Dr Marijo Wilson, and she’s actually been a real estate mentor and trainer for over the past 15 years. Now this is amazing. So real estate investing, one oh one contains four buckets of money to Marijo. What are the four buckets of money? So we have appreciation, depreciation, cashflow, and principal pay down. Those are the four buckets of money. Okay, can you go through each one of those with us? Absolutely. So appreciation is when you buy a piece of real estate, over time it’s going to become more valuable. It becomes more valuable because of supply and demand. Also, because building materials and hourly wages go up. So in order to replace that or to build another home, it’s gonna cost more money. And so appreciation over time. Again though, remember we don’t buy for appreciation only we buy for cashflow, right? Cashflow was when we’ve got all the bills paid and the money coming in from rents are still over and above what it costs to maintain that property through taxes, the debt service, the insurance, and we have money left over. That’s our cashflow. So we always buy for cashflow. Number one, appreciation becomes the icing on the cake, right? And then the government actually gives us a tax benefit for buying an asset that’s appreciating and they get to say we get to depreciate it, which means we get to have a paper write off on our taxes, which is one of the reasons that real estate is such a phenomenal investment is because the government gives us tax incentives. So if we have enough properties with depreciation and you’re still working that job, guess what? Your depreciation can actually offset the total income from your job and you would pay zero taxes. So what is the best asset class you say for cashflow? I think mobile homes. So you are guys are in the right place at the right time. So cashflow is phenomenal. You might get a couple of hundred dollars a month with a single family home, but you could get $500 a month with a mobile home for one 10th the amount of capital involved. Isn’t that amazing? I told you there are little boxes that spit out cash. We have one more bucket we haven’t talked about principal pay down. So what’s that all about? So prince we’ll pay down is actually when you um, have like a mortgage and then you’re actually putting your money in. Not only did you make that payment, but now you’ve got extra money in your [inaudible] actually paying that principle first before you pay interest. That’s principal pay down. So when asset remember is when somebody else is paying for it. So your own home is not considered an asset because it’s a liability. You’ve got to go work your to make your money to pay your house payment. But when you buy an investment property, now it’s an asset because your tenant is paying down the debt that you borrowed to buy that asset and putting cashflow in your pocket with appreciation and tax benefits. And what is one of the best ways for principal pay down the eyelove is sandwich lease options. And I explained this in a video previously where you know you’re getting the money upfront, money in the middle and money at the end, making that sandwich, so ever delicious. I hope that this video helps you know what real estate investing one-on-one is and I can’t wait to see you on our next video.
If you love this video, I would like to invite you to my free webinar where I’m going to teach you how to bind sell mobile homes and the top three secrets that top real estate investors use to increase profits, whether in a booming or slow economy. Please don’t forget to like comment, share, and subscribe and I can’t wait to see you on our next video.
After watching this video , click here to register for the upcoming webinar that I’m hosting about How To Buy & Sell Mobile Homes With Nothing Down… Whether You’re Just Starting Out Or Are A Seasoned Expert!
You’ll also discover:
- Why Mobile Homes are little boxes that are easy to overlook… yet massively profitable!
How To Become A Real Estate Expert With NO Previous Real Estate Experience
I’ll Share Exactly How I Acquire 25-30 Mobile Homes Every Month with Nothing Out of Pocket