Make Your Money Work FOR You!
This is a concept taught by many authors, some as famous as Trump, Allan and Kiyosaki. According to their teachings, no one gets rich working for a living.
People can survive this way, but to build wealth, you must put some of that money to work for you as well as borrow other people's money (OPM) and put that to work for you too.
When we refer to OPM we're usually talking about a bank's money in the form of a loan or mortgage. If you take money out of your pocket, it would be for the purposes of the down payment and/or closing costs on a purchase.
Anyone who has ever owned their own home and lived in it for any length of time realizes that it just increases in value over time. That value, otherwise known as equity, can just sit for years and years or be a valuable remedy if there is an emergency and you need to take it out.
Taking that same principle and multiplying it with other real estate is the basic idea of putting money to work for you. If, instead of owning just one home and letting it appreciate for 10 years, what if you owned to 10 homes? You would have been appreciated equity now times 10. Except you are only living in one of the homes and renting out the other nine.
This is the most basic principle kind investing in real estate, using the most valuable asset you have: TIME - Then sit back and let the market do what the market has been doing for the last 200 years, appreciate in value.
