We all know the importance and allure surrounding home ownership. Literally investing into your foundation, building equity and creating a secure space to raise your family and create memories. Sounds amazing! But what if I told you, your home could be all of those and the smartest business decision you’ve ever made too!
It’s Monday. Which means wake up, get ready, off to work and school, punch the clock, take lunch, deal with customers, bosses and employees, pack up to head home. Then there is homework. Dinner. Bath time. Bedtime. Sleep. Repeat. Is it Friday yet? We all do it. Maybe not in that order or with that exact schedule, but you get the idea. We are working hard. Working hard to have nice things: house, car, clothes, dinners. Whatever it may be that you wake up for everyday, there is something driving you. In my profession I see often that driving force is becoming or maintaining being a home owner. Now what if I told you that all the while you are hard punching the clock to pay for a roof over your head, you could also be building a strong business that could increase your wealth immensely.
See owning a home for most seems like the logical thing to do. We all need a place to live. We all know that part of the American Dream is owning your own home. And many of us believe that having that home paid off by the time our kiddos are out the door and we’re done working is the smartest decision you ever made. Sit back and live mortgage free. WRONG! You see owning a home is most of those things, but using that home as leverage to grow your portfolio (or business) is not only smart – it’s plain genius. The art of leverage is one of the most underused benefits of home ownership in my opinion, and here is a great read on the power of leverage.
So what is leverage? Well simply put, its using the money that you have already paid towards your home to buy another, that, wait for it…someone else is paying the mortgage on! With tools like a traditional refinance you can pull the money (or equity) out that you already paid on your home as a down payment for an investment. While you continue to make the mortgage on your home, you can have your tenants pay the mortgage on your investments. You continue this process until you can eventually pull the equity from your investments to pay off your home. Until eventually you’re actually be able to sit back and collect the rents from your investments while your house is paid off. Now, I understand that this may be a little complicated to grasp and it’s a very quick overview on how it all works, so here is another article on how to get started.
It’s very important to understand the basics of investing, leverage and how it all works. A great Real Estate professional, accountant and lender are able to help you get the ball rolling and understand the fundamentals to becoming an investor – one property at a time. I cannot express how much I believe in this business model. I understand that not everyone wants to become an investor, but I do understand that if you own a home, you can become an investor! I will leave you with a quote that I love, live by and aim to achieve, “landlords get rich in their sleep.” Why shouldn’t you!?
For more information email me, firstname.lastname@example.org, for more information on Tucson investing simplified.