Keith discusses the inefficiency of compound interest in wealth building, advocating for compound leverage through real estate investments. He illustrates how a $100,000 investment in a $500,000 property at a 6% annual return can yield much higher returns due to leverage (see the math below).
He also explains how mortgage rates are influenced by long-term bond yields and discusses the benefits of real estate over stocks.
A coaching call with GRE Investment Coach Naresh highlights the process of investing in real estate, including financing considerations and the role of a coach in guiding investors.
Here’s the math on a 5:1 leveraged RE return at a 6% appreciation rate:
Year One: $500,000 x 1.06 = $530,000. Subtract $400K debt = $130,000 equity
Year Two: $530,000 x 1.06 = $561,800. Subtract $400K debt = $161,800 equity
Year Three: $561,800 x 1.06 = $595,508. Subtract $400K debt = $195,508 equity.
GRE Free Investment Coaching:
Show Notes:
For access to properties or free help with a
GRE Investment Coach, start here:
Get mortgage loans for investment property:
RidgeLendingGroup.com or call 855-74-RIDGE
or e-mail: info@RidgeLendingGroup.com
Invest with Freedom Family Investments.
You get paid first: Text FAMILY to 66866
For advertising inquiries, visit:
Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”
Best Financial Education:
Get our wealth-building newsletter free—
text ‘GRE’ to 66866
Our YouTube Channel:
www.youtube.com/c/GetRichEducation
Follow us on Instagram: