This One Thing is the Financial Gift You Can't Afford Not to Give Yourself
What should you remember when making rental property investments during a recession? The most important factor to keep in mind is actually what has kept me going and choosing not to retire. I often get asked by my friends and family, and even my investors, about retiring. Why have I not retired yet? With the hundreds of sound real estate investments I have made over the decades, I certainly don’t need to work. So, why not retire, they ask. My answer is ‘passion’. I am passionate about what I do, which is to help more and more people secure their financial futures. I love being able to help people retire well. I love being able to share this one central aspect of a successful real estate investment – even investments during a recession – which I speak about in my latest video.
The 30-year loan is a gift you can’t afford to turn down.
Think about it – who in the world gives a loan at a fixed rate of interest for 30 years? No one has ever heard of such a thing. People from Europe can scarcely believe this fact. However, Americans can use this gift to invest, to buy homes, and create wealth for their family. You can make the smallest possible down payment for the home you buy (which when I started to invest was just 10%) and the loan takes care of the rest! This loan can be repaid over 10 years, 20, or 30 years – as you wish!
I cannot stress enough the vital importance of 30-year fixed-rate loans (also called the Fannie Mae loans). Even a financial whiz like Warren Buffett agrees that this is one of the important ways to create wealth, even when making investments during a recession, a boom, or anything in between. This is central to my investment system; to what I call the Remote Control Retirement Riches formula. When you use this incredible financial gift for your real estate investment, you are empowering yourself to create a secure and prosperous future for yourself and your family.
When inflation becomes a friend.
With the 30-year loan, the market taking an economic downturn does not have to bother you. When inflation rises, you can rest assured that it has no negative impact on your investments during a recession in the long run. When inflation is at current levels of 8% and all around us things are getting more expensive, your mortgage payment never rises. Things become more expensive across the board and the dollar just doesn’t stretch as far as it used to. Now, this can be enough to make you quite despondent – until you realize that your mortgage payment remains the same.
The fact is that inflation actually erodes the value of your loan. As inflation and the cost of living rise, so do rents, which typically follow the cost of living. So while your rental income will most likely rise, you will find your loan payment easier and easier to make. Soon your loan will look puny, and like I always say your repayment will seem about the same as dinner in a fancy restaurant.
So yes, I will admit that I am quite passionate about telling more and more people about the amazing 30-year loan. I want people to take advantage of it to secure their financial future. This is something that some top experts and I are going to be speaking about at our upcoming expo. To know more, register for our upcoming real estate event.