Why Buying Rental Real Estate Will Be The COOLEST In The Roaring 20’s
We have a quick video for you here today. It's a quick little Insider's Report and this is kind of really going forward and not like looking backward and necessarily anything. But this is really why buying rental real estate is going to huge in the roaring twenties and the twenties coming ahead.
It's going to be the best of times I think or the worst of times for people depending on what situation you're in, depending on really what kind of attitude you have, what kind of mindset you have. Because I think we're going to see some great things. We're also going to see some bad things come to fruition over a decade. It could happen sooner than later. You never know. However, you just never know. Let's just put it that way. It could be bad things happening this year. It could be happening eight years from now. You just don't know. But I think they're going to happen in this decade. Good, bad and different. It's kind of like every other decade, right? There's good, bad and it is balanced. There's neutral, right?
So what is going to happen in his decade and how can you prepare going forward? Whenever there are bad things happening, like for instance, the last decade, I believe it was the first decade in existence where we didn't have a recession, real recession or a depression, the like events. What does that mean? Probably gonna have one in this decade. I thought we're going to have another one five years ago, a recession, kind of a dead cat bounce if you will. Not going to get into too many technical terms here, but how can you prepare for that? That's the biggest thing. Like, "Okay, that's great and all Brandon." But how can you prepare for that? How can you do things going forward?
Buying rental real estate
You don't need a lot. Ten houses over the course of time can set you up for the rest of your life. Right? Ten houses paid off over the course of 10 20, 30 years, a lot of people can pay them off if you really focused on just those in 10, 12, 15, 17 years. How are you going to do that? What are you going to do? Getting 10 properties that will pay you once they've been paid off a thousand a month in cash flow is $10,000 a month. I mean, I think most people could live off a $10,000 a month, not having to do anything, right? Pretty awesome. That's over six figures, $120,000 a year, we'll just say a hundred grand a year just in case there' are some things that happened there and you don't make the whole full $120,000 but you have a hundred grand a year in passive income. A lot of cases, if you're doing it right, tax-free income, it's depreciated. There are tax advantages for it. So what can you do to do that? It's buying rental real estate. You don't have to get into the apartment complex. You don't have to get into all that stuff. Buying single-family homes, rentable, buying undervalue, buying appreciating homes that are gonna go up in value over time where they're going to be rentable to the average common family.
Renting Vs. Owning
Some of the things coming forward, just some trends that are coming ahead - some reports saying if 50% of people are going to be renting if 50% are going to be owning homes. Right now, we have 64% homeownership. We had almost 70% homeownership before the crash. It's steadily declining and these new generations coming up there, they want to rent more.
Rent Control
There's a report saying that in the next decade or two, next couple of decades, we're gonna have 50% of the country renting. Getting into that game and preserving your wealth. Not only that, there's a fourth reason actually. It rates. That's another reason why we wanted to have that. So we're going to talk about that. This is huge, obviously, right? Just massive, just trends, always following the trends. Remember, the trend is your friend. I say that in all of our videos, our market updates. Two is rent control. I'm getting in while you can cause the rent could be maybe grandfather, maybe you can kind of get past that rule possibly. Probably not though. But you'd never know. I just wanted to put up here because it is something that's coming and it's something to be, really be wary of - where you're investing in what's coming down the pike.
Control on Cash Flow
Three - rent, really control of your cash flow, taxes, wealth and retirement. That's the biggest thing. That's what everyone wants, right? That's what people are working for. That's what they are investing in stocks for, in real estate or wherever, a business. They're investing to really gain cash flow and improve their wealth and hopefully retire. It would actually have something to live off of and be retired. Right? So that's what the investing in single-family homes will do for you. If you manage your properties, you get the right education to do it. This is what it's all about and this is what it's here for.
Rates
The last one is rated. We're seeing negative rates around the world. In Denmark, they are paying for your mortgage. Instead of paying interest, you're getting an interest payment. Can you imagine that? Instead of paying principal and interest as we do here, you're paying principal, then you're getting an interest payment because they have negative rates there. So people that are holding their money in the bank are losing money. They're paying to have their money saved. But the negative rate is that they are telling people, "We want you to go invest." If you go invest in rental properties - you have 10 rental properties and they are paying you a thousand a month, they're paid off and you're getting $10,000 a month. Oh, and you're getting an interest payment paid to you on each of those. Now how much does it go up then? Maybe another grand, two grand, three grand a month in cash flow that you're getting from interest. Rates, you can say all you want. Rates keep going down and people always say like - there's a lot of commercials around here and say, "They're not going to go down forever." They can and they've shown it around the world. Now you can keep rates to zero or they are going to go negative. There's not a lot of ammunition left in the old chamber.
There are one of those things that they've already talked about. I believe Trump and what's his name - John Powell, the chair of the Fed. They've already talked about negative rates and stuff like that. I think that's one of the things that might be coming here eventually. It could be, again, three years from now, five years from now, who knows? But something may be prepared for and start building this now while you can and while times are good, right? Prepare now that way the crisis for many is an opportunity for you.
I appreciate you guys, appreciate your time, your energy. If you got something on this, please let me know. Send us a message. We get a lot of messages from you or when we see you about whatever. We get a lot of people asking and saying stuff about this, but if you have something or a question that we can help other people with, please put it in the forum here so that we can answer it and help as many people as possible. So I appreciate you guys. I appreciate your time, your attention. It really is the most important asset we have, and we will see you guys in the next one.