I finally did it, I joined the Jay Morrison Academy. For the longest time I felt that my education and experience would allow me to invest without going through a paid academy but after having a conversation with Brandon Wigly on Episode 59 of the Millionaire Podcast I realized that I could be way more systematic with my investment approach if I were to learn an actual process as opposed to just fitting together pieces like I have been doing up to three doors.
On the first video he gave an example of his mom’s first home purchase. She bought the house for 100k, and a few years later the home was worth 200k. They were immediately taken out of poverty and into affluence. This affluence helped them create even more affluence. This isn’t the only story that we hear like this. On other episodes of my podcast Al and Roberta both had similar experiences with their first buys. They bought in with a low down payment loan and then walked with multiple six figure gains.
Think about this though… everyone else is doing this. We are just having a hard time convincing OUR people that this makes sense. You can’t get ahead in the wealth race if you choose to rent, while the people opposing you all own and then years later walk with equity and wealth.
This is a situation that I was talking to my mom about. She is just like the people in the second paragraph. I have told this story before buy my mom bought her first home around 28 as a single mother and sold it a few years later when she remarried for a gain of $70,000 net. She paid zero money out of pocket to buy the home and actually paid less on her mortgage than she would have in rent. All she had to do was be responsible and elevate herself which she won’t admit she did but I think it did. She used this money to pay off student loans and other lingering debt.
Right now we are looking to either buy or rent for a year or two before buying. We being my wife and I. The thing is that time is so important and you never get time back. The two years we wait could cost us 50k in equity. For example, There are deals I saw back years ago for $100k that are now on the market for $250k. That is $150k that I missed out on by continuing to rent and do nothing. The strategy is ownership. Ownership will give you a silent partner running along side your marriage called home equity. As Roberta Hoskie put it, “equity is the reason we are even in this real estate game”.
The thing though is you don’t get equity when you rent. You will make the same, similar or even more of a payment to the mortgage as you do the rent but you wont get the tax breaks and you won’t be walking with a check when you leave. Ownership puts you in the driver seat. Renter-ship puts you in the backseat. The backseat to someone else reaping the big rewards.
This is just talking about money though. I always tell people that ownership brings a heightened level of ability out of you. You will learn to delay gratification. You will learn how to be disciplined. You will learn how to work a lot harder than you thought you could work. All of these things will take your life, your career and your finances to the next level.
So, you elevate your wealth and you elevate yourself. The key is that you have to do it smart though. If you are buying a house, make sure that house is no more than twice your earnings for two years (read Millionaire Next Door). Renting will kill you. Renting will rob you of your progress and your wealth. Renting will set you back. Don’t rationalize renting especially not as a long term strategy.
If you are interested in joining any of our clubs we would love to have you. Email firstname.lastname@example.org if you haven’t yet done your taxes and haven’t created an LLC to organize your hustle, do so now! Email email@example.com today!
Be great and invest well!