340: Do Homeowners Really Build Wealth? – with Daniel Amerman

Low Mortgage Interest Rates For Income Property with Caeli Ridge

Your home is a liability, not an asset.

That’s according to Robert Kiyosaki. This is because your home takes money out of your pocket every month. An asset puts money into your pocket. 

Today’s guest, author and economist Daniel Amerman, has a different perspective. 

He states that forces like inflation and a mortgage (leverage) make your primary residence a strong investment vehicle.

Daniel’s research shows that historically, homeowners nearly double their equity in three years, triple it in seven years, and quadruple it in ten years (80% LTV loan).

We discuss whether home price increases are derived from appreciation or inflation.

First, I remind you why financially-free beats debt-free. Convert equity to cash flow. Extra mortgage principal paydown does the opposite – it converts cash flow to equity.

Classically, on a balance sheet, your home is an asset.

Remember that a homeowner’s return is not generated from equity. It is generated from the local housing market.

Hear my rant about how carpet beats hardwood floors.

Resources Mentioned >

Resources Mentioned: Daniel Amerman’s website: www.DanielAmerman.com | Get mortgage loans for investment property: RidgeLendingGroup.com | New Construction Turnkey Property: CashFlowAndGrowth.com | Ali Boone’s Recommended Book: https://amzn.to/2NsMVlF | EQRPs: text “EQRP” in ALL CAPS to 72000 or: eQRP.co | By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. | Best Financial Education: GetRichEducation.com | Get our free, wealth-building “Don’t Quit Your Daydream Letter”: www.GetRichEducation.com/Letter | Top Properties & Providers: GREturnkey.com | Follow us on Instagram: @getricheducation | Keith’s personal Instagram: @keithweinhold

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