Have you ever wanted to buy a home because you've heard it's one of the easiest and fastest ways to become a millionaire? After all, somebody who is a tenant tends to have a net worth of around fifty five hundred dollars, but somebody's a homeowner tends to have a net worth of around 170 000. Now, yes, that's not millionaire yet. But what if you could start as a homeowner and then over time become a landlord and own multiple properties? We're not talking gentrifying areas, we're talking about building your wealth by owning multiple properties over time and giving people a place to live and rent as they might want. Now, Have you ever wondered? Well, fine.

Kevin Maybe I do want to become a millionaire landlord over time. But let's be real: if the median price of a home in America is just over four hundred thousand dollars, how am I ever going to be able to afford that? And when I do, how do I know that's actually going to be the property that I want to live in? What if I want more Now real estate may obviously seem Out Of Reach if you're comparing to now wants versus potentially your ideal goal of becoming a millionaire. And so what if I told you there were two ways of thinking about real estate. One was the noob way and one was the pro way.

For example, a noob might think I gotta have 20 25 to save for a down payment before I can even get into real estate I need to buy in an area with high cash flow so that when I rent out the property I've got lots of passive income and I need to buy something that's a fixed stop and inspect it. So that way I know the work has already been done and ultimately I need it to serve my needs as a family in the future. So maybe it'd be like a four or five bedroom house, maybe even with a pool that we'll start with. And of course no HOAs because who wants HOAs And that way, since I know I'm not going to be in a position where I can make those determinations yet and actually have the money do that for another five or ten years.

why would I even be remotely interested in getting started in real estate? Well, that's the way the noob speaks. The noob takes what they've learned from our school system about real estate and finance and nothing and Compares that to miscellaneous bits of information they've heard along the way whether it's through the news media or social media and they come to the conclusion that you know what this is too overwhelming, just not ready to buy a home. But the reality is, you can't blame anybody for thinking that way. After all, that's what America's taught.

We've been taught that wait until you're ready and wait until you've got your life figured out. and wait until you're stable. and wait until you have a spouse and wait until all the stars align before you buy a home. Because after all, that's a lot of debt.

Well, the pro has a different mindset. The pro sees real estate debt as good debt and possibly one of the best risks you could ever take in your life. and really a risk you can heavily mitigate given that you're not just signing up for debt you're signing up for Real Estate which tends to be an appreciating asset over time. That is the value.

The property tends to go up over time. It tends to have an appreciating rent over time, which increases the amount of potential cash flow you could have out of that property since your payment tends to stay fixed and the pro looks and says, look, sign me up for as much 30-year fixed rate debt on assets like that because the debt stays level, or as your payment stays level, your debt actually goes down over time, your debt stays level, and your potential cash flow and appreciated value goes up. and so over time the pro knows that's what I Want to take advantage of that wedge and value that's created by paying off a loan over time when the cash flow from that asset actually goes up. So now that's pretty high level.

Let's now talk about some basics for how you might actually be able to start and then once you get in, you tend to want to do it over and over again because then your goal becomes how many of those chart wedges can I grab and take advantage of to maximize my wealth over time first and this is a pretty easy one. Pay your credit related bills twice a month now. I'm not saying pay them off and when I say credit related I mean anything that could affect your credit score that could be your phone bill, credit card, bills, water bill, you name it. Anything that shows up on your credit report.

If you haven't run your credit report, do so just Google or go to Experian or go to Credit Karma and run your credit. Make sure you know what is on your credit report. You can also go to annualcreditreport.com and get a free credit report hashtag not sponsored any of these not sponsored now. I'm not saying pay off all your debt.

Obviously that is ideal, but it's easier said than done right now. If you start making a second payment on any credit related account you have, then you'll start manipulating the algorithm. Dare I say to train your credit score to believe that you're on A New Path of financial stability that can actually boost your credit score with minimal change. All you're doing is making an extra small payment.

Again, you don't have to pay it off if you can pay it off great, but make an extra payment. Get in that habit of paying your credit related bills twice a month now at bare minimum, it's almost impossible to be late on anything. if you're making a payment twice a month that will help you increase your credit score. And that's important.

When it comes to buying real estate, anything over 740 is typically considered top tier. Premium rates is what you'll end up getting with a 740. plus. Generally, 740 is the cap, though some credit unions will take a 760 as a cap, and anything over 600 to 640 is usually that threshold where you want to be at minimum, so there's a five in front.

It's going to be a little bit tougher, but low 600s is possible to get into real estate. Now remember, the Noob is always looking for Perfection The Noob's like how can I get passive income with an 850 credit score? The pro actually gets work done and realizes it's better to act than act perfectly Because acting perfectly usually means not acting. And the earlier you learn that the perfectionist is usually the one who's most unproductive, the bigger you'll start actually getting things done. That's not saying don't try hard, but it is saying get things done And right now the goal is pump that credit Score! After that, we look at your income.

If it's less than forty thousand dollars a year, we need to get that up now. Easier said than done, we think, but not necessarily the average salary for a starting level software engineer after a coding boot camp is 66 000. and oftentimes could be much more starting salary for a registered nurse 75k for a realtor even though that that's commissioned and not salary based usually around 83k Series 65 Starting Salary: 74 Licensed electrician 60. And we're not even talking about potentially running the business now.

Whatever income you have, ask your lender that is, pick up the phone and call a local mortgage loan originator somebody who's got great reviews. Stay away from the big Banks You want to go to smaller direct lenders or Brokers and ask them hey I'm looking to buy a house. Can you qualify me based on my income from my job and Borders income? And ask for the requirements for Borders Income that will allow you to help qualify for a house based on you renting out one room or two rooms. and now you can leverage your job and that you're renting out rooms to qualify for a home to supplement what you can qualify for.

Now, when it comes to non-housing debt, you really want to stay away from it. Don't Finance the refrigerator or the couch? you don't Finance anything you don't have to finance. Reason for that is every one dollar of non-real estate debt you have, which the pro calls bad debt. The pro only likes good debt which is generally real estate debt debt that makes you money over time.

every one dollar you have of monthly payments on bad debt again, refrigerators, cars, any kind of monthly payments that show up on your credit report robs you of about two dollars and 34 cents of purchasing power in payments for a house. This is called the rule of Two Three four. So if you have a thousand dollars of debt, the payments you can afford on a house Falls By two thousand, three hundred and forty dollars, that's more than twice the amount of the payment you're making on. be it that car or whatever it is that in together, you're making payments on.

Yeah, the same is true for many student loans, but talk to your lender about that. now. Not only are you losing that cash every month to a depreciating asset to something that is bad debt, but it destroys your ability to actually gain wealth with good debt. so you fall into a black hole.

Now the pro knows good debt is real estate. The kind of debt you generally don't focus on paying off. It's actually the kind of debt that lets you leverage in a relatively. Safe Way Building Wealth You can build wealth with just cash, but it takes a lot longer and it's a lot slower now.

I Teach exactly how to do all of this in substantial detail in detail that's probably a hundred times as detailed as this overview video in my programs. I'm building your wealth link down below. Pay specific attention to that zero to millionaire real estate investing course. But let's talk about why you want to hold real estate and ideally hold it forever.

And then let's talk about what to buy. So the reason you want to hold real estate ideally forever is a avoid those expensive selling fees of seven to ten percent. Once you factor in repair costs and the time it takes to actually sell a property plus commissions and escrow and title, all that good stuff. But you also have to pay taxes and you ideally want to avoid paying taxes because then your wealth will be greater now with real estate.

If you do sell, you can do a 1031 exchange, which is a way of deferring your taxes. You're calling up the IRS and saying hey, I'll catch you later, but ultimately you'd still be paying taxes if eventually you sell, right? Well, not necessarily see. The beautiful thing about real estate is you can build up your portfolio and then when you need money access to Capital you can refinance your real estate and then buy potentially more real estate or Finance whatever it is you might necessarily need to finance. And when you take debt out of real estate, you don't pay any taxes.

And at some point in the future when your time in this video game simulation is up, you could pass those properties on to your children tax free via the stepped up tax basis, which is phenomenal. Now what do you want to start with? Well, usually you want to do as the pro does. Start with a basic three bedroom two bath, something that needs a little bit of cosmetic fixing up but isn't something that's completely trashed and has expensive repairs needed like a roof or a foundation. You want something in a great area that you can easily do some paint, wallpaper removal, and carpet work on? That's it.

Ideally stay away from additions, stay away from high tension power lines and busy streets. Focus on just some Cosmetics that you have to do and follow the red flags. If you're your home inspector identifies some red flags, call the appropriate contractor, let your realtor help guide you. Hey, they saw this on the report regarding electrical work.

Meet with a couple different electricians and get their professional opinion on what the actual cost of that potential issue is. Then you can always have a discussion with the seller as well. Now some noobs might say, well, if you have to rent out the home, you better hope with cash flows. But remember that, cash flowing real estate, while it's phenomenal, generally takes a down payment of between 20 to 35 percent.

In some areas, cash flow more than other areas. Now, not only are you going to have less cash flow if you put down less money, so if you put down three or five percent, you'll probably be negative. But the way to look at that is kind of like DCA into real estate. Yeah, you'll have a slight negative, but your dollar cost averaging into real estate to get up to that 20, 25, 30 down payment where you would experience a cash flow and you can get there over time.

and by getting there with an appreciated home value, you can also eventually get rid of more mortgage insurance. Usually people do the math. Go: I Don't want mortgage insurance off to pay that for 30 years. Nobody pays mortgage insurance for 30 years.

Most people apply to get rid of mortgage insurance within two or three years. It's not a big deal, but look into the rules of what it would take to get rid of mortgage insurance when you go buy a property. Now with that said, it's absolutely important to remember you're not flipping real estate here. Think about it like slowly acquiring building real estate.

Your goal isn't passive income tomorrow. your goal is passive income when you're 40, 50, 60, 70. So if you're starting when you're 20, you've got a huge Head Start Here, it's okay to have a slight negative as long as you're confident in the stability of your job or your ability to get another job. So leverage in now.

Final rule of thumb: Buy In areas where you would feel safe doing a Craigslist transaction at nine o'clock at night, if you are asked, hey, come meet me down this particular Street at nine o'clock and I'll give you cash for that thing you're selling. You probably don't want to buy real estate there if your first reaction is, uh, can we meet somewhere more populated or live a safer That's where you don't want to buy real estate. You want to buy real estate Where when somebody says hey, want to meet up in this area, you're like that's like the safest part of the city I Don't even think about safety in that area, That's usually where you want to buy. You want to buy where there are a lot of homeowners and few renters.

That way, you can be surrounded to have your property surrounded by a lot of homeowners. So what does the noob do? The noob waits to buy real estate. The pro buys real estate, fixes it up, and then Waits The Pro: Buys In quality areas, the noob gives all the reasons why they can't They don't feel like they have the down payment, they don't think they're ready, they don't have the spouse, They don't have all of the objections that they can give. They give a reason for why they shouldn't buy real estate, but you as a pro in the making want to avoid all that.

So with that said, check out the programs linked down below. We'll see in the next new verse. Pro.