One thing that people need to understand is that the stock market was never designed as a wealthÂbuilding tool . It was designed as a wealth preservation tool . It was designed to simply keep up with inflation , and it does that very well . However , it is not going to retire you or make you rich .
Bruce : So , you are just talking appreciation . You say that real estate makes money three other ways ?
Steve : Definitely cash flow . This is money that comes in month after month that you can spend on bills , travel , romance or whatever you want . The goal is to have enough cash flow ( second stream of income ) that it exceeds your wants and needs . This allows you to retire at any age and simply enjoy life more . Cash flow is the cake , appreciation , equity buildup , and equity capture are the icing on the cake . Stock investors think appreciation is the cake . It is not . colleges . Start reading , listening to books , attending seminars and workshops , like the ones at Total Wealth Academy , until you know what you are doing . Then simply get out there and do it . I started with bad credit and no money at age 27 and was eventually invested in over 4,000 apartment units . If I can do it , anyone can do it ! Believe in yourself and take massive action toward the goal of building a second stream of income . It is the only thing that works .
Steve : Yes , and when you combine those four together , your rate of return is closer to 50 % annually over the life of the investment . Almost seven times higher than the stock market .
Bruce : Which of the four ways is the most important ?
Bruce : What advice would you give to someone that wants to build a second stream of income ?
Steve : Just get educated . There are no secrets to this . Real estate has been the same since Babylonian times . It is just not taught in our high schools or
55