Group economics is quid pro quo: Using group investing to create affordable housing.

This week in real estate investing we were able to create affordable housing for a family in need.  We acquired a property that was tenant occupied. The tenants don’t make much money and the tenants could use a break.  Since we can empathize with the tenants (and because we don’t want an immediate vacancy and cash flow drought) we were willing to give them multiple small breaks which will help them out but also help us out.

See we benefit by keeping a tenant happy, keeping a building filled and we benefit because they aren’t going to trash the place and that immediate equity of good will will keep them off our back for a few months while we accumulate reserves.

We get money and they get money. Quid pro quo, something for something.

Group economics is quid pro quo.  When you engage in group economics we all benefit. When we engage in linear economics they get richer while we get poorer.

When I brought up the black tenants need black landlords some smart person argued with me about racism and how my tweet was racist. To that I say, so what. If you want to call looking out for  your own racist then I’m racist AF and so is every other group that is winning in America.

Ownership gives you the ability to cut breaks, give breaks and still win in the process. A non real estate example is the business I work with on weekends.  The business gives a steep discount to people in the community, she cuts prices for them 25% per transaction.  This is huge.  This is a discount they wont get in other communities at businesses owned by other cultures.

Some might think that she is losing but this is a win.  If it wasn’t a win she wouldn’t do it in the first place.  The community wins by getting high quality food at a steep discount which allows them to keep more money in their pocket.  She wins by keeping the rif raff out, building up good will, which allows her to operate safely in a dangerous environment which brings in the big bucks with non discount seeking customers. She wins, they win. Quid pro quo. 

The last example is that this is something I have seen in the podcast.  When I share their stories they get more business, when they feature on my podcast I get more spins and more sponsors.

So I encourage you to seek ways to engage in group economics. Seek ways to leverage each other and work together. Its not a competition to see who can build it bigger or better. Its not a competition to make money and stunt on everyone. WE don’t suffer from a competition gap we suffer from a wealth gap and the bridge to wealth is team work. 

If you are interested in investing with our club on either the stock or real estate side we would be happy to welcome you into the partnership.  Email membership@capitaltodd.com today to join.

Be great, invest well,

Todd Millionaire

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