This next paragraph took me YEARS to understand. I will do my best to explain it here. Consider reading it several times. It’s very revealing.
I’ll start with a quick story.
Three real estate investors purchased rental properties next to each other. The properties were identical with similar tenants. One investor lost his property to foreclosure within a few years of purchase, one of them never advanced financially and claimed rental properties don’t work, and yet the 3rd investor thrived financially, and everyone praised him as a success. In fact, all his friends said, “real estate makes you rich!” They were right about their friend being a success, but… they were wrong about real estate as the vehicle that made him rich.
The reason these 3 investors had different results is because of the FINANCE. Remember, same properties, same tenants, same location. But very different results!
Real Estate is a game of finance. All investments are a game of finance. The brick and mortar don’t make you rich necessarily…. it’s the financing. It’s understanding spreads, matching the financing to the assets, the liquidity, it’s the positive leverage, it’s all the “Stuff” that banks do… and guess what… once you understand this brilliant “stuff”, it’s not as difficult as real estate, you can do it with assets that sit in your filing cabinets and do BETTER than investing in most assets out there!
No one is born knowing how to drive a car, how to cook, or how to invest. All this can be learned. “Finance” sounds scary, but it can be learned like everything else.
We refer to the students who take the time to learn “finance” to start seeing the financial matrix and use these proven strategies “Finance Hackers”. Finance Hackers design elegant financial strategies from the comfort of their homes to work for them and use the assets THEY choose; not difficult ones that include volatile markets, or risky investments.
And thousands have done just that! They come from all walks of life, and love what they have seen!