Why Real Estate Is I.D.E.A.L. - “L” = Leverage - Part 5

Lou Brown

Aug 12 2021

Then comes the icing on the cake. Not only can you serve people, receive income, write off more than you make, and let the tenants pay down the mortgage as the property increases in value, but you get a huge bonus. 

Leverage. Bankers allow the public to borrow 80-90 even 100 percent of the real estate value. Why is that? Because they understand that real estate is safe collateral to lend money against. It has traditionally held its value and is very forgiving in that if it were to drop in value, it is a very slow drift that usually comes back in line quickly.

Contrast that with the stock market. Do you know what the brokerage houses will lend on a stock? Usually 50% of value. That’s 50% leverage in stocks vs. up to 100% in real estate. What do the stockbrokers know? Stocks are risky. Stocks (and bitcoin) can lose huge value quickly and are slow to forgive. Leverage allows you to invest little to none of your own money and control an income-producing asset with excess tax benefits as it grows in value while the user (your tenant) pays off the debt. There ... now go find me something better.

A lot of long-time investors will tell you that the best you can expect from your rental investment portfolio over time is about a 10% return. Well for most of us 10% compounded over many years will do just fine. I’m sure a lot of you wish you could say that about your investments in the stock market. But what they don’t know is -- you can add a system to make it better than average!

Timestamps: 

0:01 - Introduction - “ Real estate the I.D.E.A.L. investment, the final chapter Leverage” 

0:38 - Lou’s wins of the week

4:15 - Today’s give away - Lou’s book: “ Doing Good, While Doing Well” 

5:10 - A foundation helps a new member put up money for his down payment to buy his property. 

6:42 - L for Leverage - Real Estate is the I.D.E.A.L. Investment

15:02 -  Aug 27th, 28th & 29th - https://www.MillionaireJumpStart.com/Lou

19:16 -  Ask Lou anything about the real estate business

Questions for Lou

20:30 - With the Eviction/Foreclosure Moratorium being extended to Oct 3, how do you handle your Lease Purchase tenant buyers and your owner-financed buyers who cannot pay?

23:31 - Are we required to record the Affidavit of Trust in the County records? 

24:51 - Maximum Asset Shield if I miss Thursday, will there be a chance to get it or not?

25:37 - How is the moratorium affecting this?

28:23 - Would you tell me a little more about the UWE?

30:40 - https://www.EZfixcredit.com

31:24 - Can House Joint Resolution 192 plays a part in my property purchases?

35:00 - Let say House Joint Resolution 192 can help me in my property how can I invoke it?

35:49 - Next week’s show: Mortgage Defaults Rates

If you are JUST getting started in real estate investing, you NEED to attend my ONE-DAY virtual training. I teach it LIVE over ZOOM, and it's only $1 (yes, one dollar) for SIX HOURS of solid how-to training! https://www.wealthbuilderworkshop.online

If you're ready for a more in-depth experience, then you owe it to yourself to investigate my THREE- DAY Millionaire Jumpstart Event. I host it four times a year in various locations, and you can attend LIVE and in person. I'm your coach all three days. Find out more at https://millionairejumpstart.com/

Take Lou's Course:

https://www.udemy.com/course/realtors-and-real-estate-investing/?referralCode=305A2A5DB2A2C4543B7F

Lou Brown has been buying, selling and holding property for 40 years and you are about to discover what a lot of so-called gurus are missing.

* How to buy all the property you want without ever visiting a single bank or needing to qualify for a loan…

* How to have a buyer or renter before you even buy property…

* How to have them already pay you money before you sold them anything…

These are exactly the kinds of deals he does day in and day out. Most ‘investors’ are getting it wrong. It’s not about the property, it’s about the buyer. Buying right and buying cheap is what you’ll do after you have the buyer.

Media Sites:

YouTube: https://www.youtube.com/user/StreetSmartInvestor

Podcast: http://Streetsmart.mypodcastworld.com/

Facebook: https://www.facebook.com/StreetSmartInvestor/

Web Site: https://millionairejumpstart.com/ and https://streetsmartinvestor.com/

Real Estate investors in all fifty states across Canada and fifteen foreign countries including as far away as Australia and New Zealand, have long regarded the training, systems, and forms created by Louis Brown as the best in the industry, Quoted as an expert by many publications and authors, “Lou” draws from a wide and varied background as a real estate investor having been buying property since 1976.

He’s invested in single-family homes, apartments, hotels, developed subdivisions, and built and renovated homes and apartments. Each of these experiences has given him a proving ground for the most cutting-edge concepts in real estate today. He’s widely known as a creative financing genius with his deal structuring concepts.

Being a teacher at heart he enjoys sharing his discoveries with others. He has served the industry in many volunteer positions such as past President and designated lifetime member of the Georgia Real Estate Investors Association, the world’s largest real estate investor group.

He is also founding President of the National Real Estate Investors Association, which serves as the umbrella association of local investor groups.

Lou Brown, rei, real estate investing, estate investing for beginners, Buy Hold Sell Book, Jumpstart Millionaire, Street Smart Investing