Think about it this way , when you are born you have three to four twentyfiveyear amortizations ahead of you in your life . In a perfect world , you could borrow one million dollars on the day you are born and buy 5 to 10 rental houses ( depending on where you live ). When you turn 25 years old , you will be a millionaire ! Your tenants paid the loans off for you !
You could then borrow another one million dollars and do it again by age 50 . And , upon retiring at 75 , you would have another million dollars . So , set your goals ! How many millions of dollars do you want in your future ?
Yes , I have seen booms and busts along the way , but I never ran scared and sold everything because of fear of “ losing it all .” I reasoned that even if the houses did not appreciate , people would always need a place to live
and many would pay rent to have a roof over their heads . Cash flow was my ultimate goal . After all , who wants to EVER sell a cashcow ?
So , does it matter what the cashcow is worth ? Not really , if the cow is producing . That is all that you should be concerned about . And , from a tax standpoint , you don ’ t EVER want to sell . The capital gains tax will kill you and deplete your earning power . The best tax plan is to die ! Yes , you read that correctly . . . die ! Your heirs will get a “ stepupinbasis ” when they inherit your properties , and they will get to depreciate them all over again !! OMG , life doesn ’ t get any better !!!
I could go on and on about the wonderful world of real estate , but this article is supposed to be short and tothepoint . ( You have better things to do than read too much and not be out looking for “ Killer Deals .”)
" So , does it matter what the cashcow is worth ? Not really , if the cow is producing ."
Therefore , I shall end this article with a few of my golden nuggets :
1 . Always use a trust when buying ANY kind of real estate . 2 . Do not own anything in your name personally .
3 . Learn how to use options on real estate , they are almost riskfree .
4 . Concentrate on getting Cash Flow FREE , not rich .
5 . If it is not against the law , it must be legal . 6 . Live a corporate “ lifestyle .” 7 . Avoid government employees at all costs .
8 . Build a team with which to work ( Lawyer , Title Co ., Accountant , Insurance Agent , Banker )
9 . Always use a P . O . Box address . ( Or the street address of your Post Office .)
10 . Best asset protection plan ? Don ’ t get divorced !
RANDY HUGHES
Image by StockSnap from Pixabay
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