CREATING FINANCIAL SECURITY FOR LIFE
Certainly you’ve heard of life insurance annuities. You pay your premiums for X – number of years. Then one day, many years later, you’re finally paid up. Your policy has earned cash value for you!
The real estate-rental housing business works exactly like that only better, For one thing, it’s faster, and also, the ratio of the payback vs. what you contribute is far greater than any insurance policy I’ve ever seen. It has to do with the leverage and compounding we’ve already discussed. Also, there’s an added dimension of personal management. You have total control over your assets. For example, when real estate sales are at a peak, you may decide to sell, taking full advantage of maximum prices (frenzy buying). Same thing with rent increases. The shortage of rental housing can produce much higher profits for astute owners.
I like to look at my rental houses as long term annuities. I buy them – I fix them when needed. After that, it’s a simple matter of keeping them maintained and rented. In return, they keep me supplied with fresh green money.
That’s fair isn’t it!
RENTS DON’T STOP
You may have a good job with sick leave and other “perks,” but many people don’t. That’s where my rental houses shine! If I get sick and don’t work, I still receive my rents like clockwork. Sure I’m responsible for upkeep. That doesn’t mean I do the work. The truth is, in my case I don’t do maintenance any more my crew does It for me.
Many business opportunities I’m familiar with don’t produce much income when the owner is not performing. Take my friend and his hot air machine. If he gets sick and ‘ doesn’t keep snapping pictures and blowing up balloons, he won’t generate much Income, at least from that particular source. The bad news is, he still has those contract payments to make. Non-stop rental income allows a tremendous amount of flexibility for property owners. It means you can arrange your personal schedule to benefit you the most. Weekend activities can be done on Wednesday. Vacations can be taken any time you choose
One of the most rewarding financial benefits of all comes at the end. For many folks, retirement means cut-backs and reduction in the quality of their living standard. Typically, retirement plans provide about half the income you’ve become accustomed to living on, that’s definitely not the kind of retirement Income you must settle for as a property owner.
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Excellent article.
Rental houses easily out pace retirement plans and annuities.