The Secret to Perpetual Cash Flows
Most people’s perception of real estate investing is pretty distorted.
Popular real estate wealth building strategies generally consist of “flipping” properties by buying and quickly re-selling them for a quick buck.
I’ve long recommended a different strategy when it comes to real estate investing. This strategy consists of buying and holding solid rental properties over a broad time horizon. This allows you, the empowered investor, to build real wealth. When you flip properties, you’re constantly selling properties, thereby creating taxable gains.
In addition, my strategy of buy and hold investing comes with another benefit. Namely, the increase in the rents and value of your property over time. Generally speaking, an investment property starts with low cash flow. The profitability of this asset grows as tenant rents are increased.
This boost in revenue comes with a remarkable tool for increasing your wealth. The way you tap into this tool is by refinancing your rental property for more than your original purchase price, based on the increased cash flow you’re enjoying. This will enable you to re-invest the amount of your loan that exceeds the original purchase price.
And here’s the juicy part: these net proceeds are not subject to taxation. Remember this, you will not pay taxes on the re-financing of your properties due to the fact that loans are not taxable. Because you are taking out a loan instead of selling the property, no taxable transaction is triggered.
This entire process is what I’ve dubbed “Re-fi Till Ya Die” and it’s how you can legally avoid paying taxes on the increased loan amount of your properties. Plus, the increased interest payments from your new loan will slash the tax burden of your regular cash flow.
This strategy can boost wealth creation which allows empowered investors to capture their equity growth for the purposes of re-investment. These perpetual re-investments hasten the natural compounding of your investment portfolio. Plus, this entire process comes with the benefit of growing your use of fixed-rate debt to protect yourself against inflation.
Seasoned investors recognize the amazing power of the “Re-fi Till Ya Die” strategy and should exploit it as much as possible in order to build their wealth during these times of economic instability.
At the Empowered Investor Inner Circle, I teach people this and other hidden secrets to wealth building.
This is an exclusive community of like-minded and successful investors who help each other invest better and avoid falling into predictable traps. The name of the game here is experience. There are plenty of battle-hardened investors at the Empowered Investor Inner Circle who have been there and done it. They’re successful, but they’ve also experienced various failures that have helped them grow as investors.
And they’re ready to share their experiences with you so that you can pick up on the strategies that work and avoid preventable mistakes. By joining the Empowered Investor Inner Circle, you’ll receive the several game-changing benefits:
- Monthly LIVE training featuring myself and special guests who will get you up to speed on what’s going on in the real estate investing space.
- Exclusive access to my team and I. We’ll promise to quickly answer all of your questions.
- Rolodex of vetted contacts (contractors, electricians, plumbers, property, etc.) so that you’ll have access to people who will help you maintain your properties hassle free.
- Full Year access to our Property Tracker software to keep track of all of your investment properties.
Learn from the best on how, when, and where to invest at the Empowered Investor Inner Circle.
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