Hello and welcome!
I just want to introduce myself as the admin, London here. We will be going over some very important aspects for getting into the right market for your job. Make smart decisions that allow you to live fast and free, while maintaining a nice wealthy salary.
You job is so important, but what you do with your time and money is even more important which is why I want to go over the differences between assets and liabilities. Not tradition accounting here, we’re talking real nitty gritty assets and liabilities that pertain to your life. Things they should have taught you in school.
So basically, everyone thinks there house is an asset when it is clearly not unless it is directly putting money into your pocket. This is similar to your car. An asset is something that directly puts money in your pocket today whereas a liability directly takes money out of your pocket today.
So if you buy a house and you’re renting it out to people, that would be considered an asset so long as it is putting money in your pocket.
This is why real estate is so lucrative but it must be understood fully from different perspectives. There are two main types of real estate.
1. Traditional Real Estate: Put your name on the loan and the deed to the house and usually go through a broker or mortgage company from real estate. They take some of your money for doing this work, about 3% on the sale of the house.
2. Creative Real Estate: Creative real estate is not as commonly known but is much more lucrative. There are positions here to have your name on the deed of the house but not on the loan. Bingo -this is key. You can completely eliminate your debt to income ratio completely with this model which is why we’ll go over it more in further detail throughout our time here.
I just wanted to introduce you to these interesting concepts that we will be going over fully on our new blog. Look forward to speaking with you and sharing knowledge.