We’ve all heard the theory behind “good debt” and “bad debt,” right? According to Robert Kiyosaki from Rich Dad Poor Dad, bad debt involves borrowing money to buy stuff on credit cards, car loans, vacations, etc… (bad debt is considered debt will never actually make you any money…) and good debt is supposedly things like rental properties that are being paid for every month by the tenant. (good debt is supposed to actually help you make money.)
But what happens if you have a rental property and your tenant doesn’t pay this month? What if they move out of the house? Do you still have to make a payment to the bank even though you didn’t get any income from the property until you get it filled again? Or do you get to call the bank and say, “sorry guys… can you wait a couple of months until I get another tenant in the house?”
Um yeah, it doesn’t feel so “good” on months like that, does it?
By the way, speaking of rental properties, we’ve been taught to believe that rentals are passive income, right? Are they really “passive” though? Do we really just do work one time, get someone in one of our rentals and then sit back and collect checks the rest of our lives without ever having to do anything ever again?
Here’s the truth… you’ve been sold a lie. Actually, you’ve been sold a whole series of lies.
Don’t believe me? Think about this for a minute… I’ve been speaking all over the country for the past 7 years now, teaching people how to make a killer income in the real estate investing business, and I have yet to meet a single person that ever said, “You don’t understand Jason… debt is a big part of my vision! I LOVE being in debt!”
Have you ever said that? Ever met someone else that said it?
Ever met a debt free real estate investor that went out of business?
Ever heard of a couple fighting at the end of the month because there’s just too much money leftover?
I didn’t think so…
Yet most people today are in debt up to their eyeballs. Most real estate investors borrow money every time they do a deal, whether they’re flipping houses, buying up rentals, whatever. The fact is, no one ever wanted to be in debt, but most people don’t know any other way to hit their investing goals without it, so they continue to choose to go into debt every month, trying to make it big in the real estate game. That’s all fine and dandy until something goes wrong, (like a tenant moves out, the rehab takes longer to sell than you thought it would, or about a billion other things that could go wrong actually do go wrong.)
What if everything you learned about good debt/bad debt was a bunch of garbage? What if there were other ways (vehicles) to accomplish what you originally set out to accomplish, only this time around, you could do it without ever borrowing so much as a single dollar? That means no monthly payments… almost no downside… Would you be willing to learn?
What if debt was really just a vehicle that people use to try to build wealth, but what if I could show you a different set of vehicles that accomplish the exact same thing without the down side if something doesn’t go exactly as planned? Would you listen? Would you spend 90 minutes of your life at our next REIA meeting to save tens of thousands (if not hundreds of thousands) of dollars of wasted interest payments this year to find out how to do it?
If you want to learn how to run a real estate business 100% debt free, then you better not miss the next MAREI meeting coming up on Tuesday January 12th. I’m going to show you how I run my business completely debt free. That means never borrowing money again. That means, when you make money, you keep it. It no longer goes to the lender. And if you already have debt, I’m going to show you how to get rid of all of it once and for all.
Listen, if you like making payments every month to creditors, this meeting isn’t for you. Or if you’re one of the guys that thinks you absolutely MUST have debt in order to have write offs on the books and not pay as much in taxes, that’s fine… go ahead and continue the mentality that spending $1.00 in interest makes sense so that you can save $.30 cents in taxes. But if you’re someone who’s sick of debt and would rather live without it being in your life, don’t miss this meeting.
Do whatever you have to do to be there. Get a babysitter, call in sick to work, bring the dog, whatever. We’ll see you there.
by Jason Roberts, Investor, Coach, Lifeonaire