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A lot of people are saying you should not buy a house, but you should be renting your house. Should you buy a house? Should you rent a house. Let’s talk about it.
Let’s say you have a million dollars. Instead of paying a million dollars for your house and owning it outright, you should take a little bit of that money and put it down on that house and rent it out. Get that income from that house, then use that income to pay for the house where you lay your head.
Now, here’s what’s wrong with that idea. The advice is good. The advice is sound. The thing is that it’s not applicable for most people. So, in many regards, this advice is worthless.
Let’s talk about why that advice is erroneous and it’s hustler’s porn. What do we know about the world? Everything is constantly changing. Let’s say you get that advice now and you want to use it two years from now, but then it doesn’t make sense.
So, you’re getting advice you can’t use. You’re getting advice you may not be able to use when you are ready to use it. Plus, you’re not doing anything right now where you are.
For a person that has the assets and is making that type of money, the advice is valid. For most people, it’s just mental masturbation. What if I get there one day. You’re all gassed up on hustler’s porn and you’re not getting any real information.
Let’s go ahead and discuss the question of whether you should rent or buy a house. I believe in abundance. Let’s say your name is John and you have a solid million dollars and you took $350K and paid off a house with cash. Then you took another $150K and paid off all of your debt. Then you put $400K in an IRA. You are a “paper millionaire.”
You converted that cash into assets. You’ll be able to retire and have a decent lifestyle. A lot of people think that would be stupid, believing it is smarter to put 900K into the market and to leverage your credit and interest rate. But what if you’re John and you’re 52 years old. Let’s say the field you are in is going to be taken over by technology and you are like 20 years away from retirement.
You’ve paid off your house and if you put that money in the market, you could have a very nice retirement. Now many people feel that information is stupid. They believe if you’re going to be financially smart, you need to have your money in the market. That’s where a lot of this stuff comes from. Most people don’t even have the money to play this game. So, it’s just stupid.
I’m going to give you the concept of a microbusiness. I worked with this client who had come into some money but who had no business experience. I told him to bank 95% of his money and we started some little businesses. We started a janitorial business and an errand service. There was one business that made $6K a month. He said before he inherited this money, he only made $3K a month.
This guy created seven microbusinesses that created about $30K a month. He lived on it. Then they slowly got into the real estate game as a hard money lender.
If you start a microbusiness, let’s say the income goal is $5K per month. It is not to take over the world. This business is only going to make 5K per month. That’s something you can create and it’s not going to take 40 hours a week. Once you get it built, then you create another microbusiness. Then you create another until you have three or four microbusinesses that do $2K to $5K per month.
Here’s the difference. All of that money does not go into a big pot. One business is for your mortgage. One business is for your investments. One business is for savings. So, you’ve got these little businesses. One of them will hit a homerun. This diversifies your income. You have a parent corporation and children corporations.
This month you could go out and create a microbusiness that makes anywhere from $1K to $3K a month easy. Here’s where most people go wrong. They want to turn that business into market domination. They want to be the biggest dog out there.
If you want to b uy a house, buy a house. I don’t agree with a lot of people on this. Set up a business. Don’t quit your job.
If you take $2K from your microbusiness and save it, then you’ll get in that house so easy. You can walk into the bank with your $24K after saving a year and your good credit and get that loan. You don’t have to do all of these wild ass schemes to get into a house. You’ll need 2 or 3 years of income proof to finance the house, unless you’re doing with from a private lender.
Like I said, if you want a house, get a house. Set up a microbusiness. Get your credit straight. Keep your job and then start another microbusiness. Get to the point where you have five to ten sources of income. If you have ten sources of income that do 2K a month, that’s 20K a month. You’re in the 1%.
Many people think becoming a millionaire is so easy because of all of this hustler porn. It’s dangerous because it’s creating these false narratives that getting a lot of money and becoming wealthy is easy. It’s not easy.
That’s the reason I did this video. So many people are worrying about this “house thing” before they make their first $1k per month. Get your money straight first. Stop looking at all this high-level finance that doesn’t apply to you. It’s pointless.
There is so much hustler porn out there that you have kids living in their parents’ basement who think they’re going to be a millionaire in three years. Most of them will not be out of that basement. That’s because hustler porn dictates you shouldn’t work hard.
That whole house thing is rooted in being financially smart when you’re not even in the situation to apply that information, which is sad.
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