Episode 55 – Real Estate
In today’s episode, I’m going to talk to you about the number one way to build wealth. It’s been proven time and time again throughout centuries and millennia that real estate is by far the best and most effective way of building wealth. If you are going to build wealth, you’re going to have to learn how to invest in real estate.
By the way, if you haven’t heard already, I just made an announcement that’s been kind of shocking for some people. I’ve decided that this September’s Titanium Live is going to be the last ever one that I do. Honestly, it just takes so much out of me to put this event on and it really is not something that at this point I can continue to do. But I know that so many of you love this event, so please, if you want to come, come join me Friday, Saturday, and Sunday, September 23rd, 24th, and 25th for the last ever Titanium Live that I’m going to be doing.
It’s going to be at the Anaheim Convention Center and I guarantee you it is going to be the biggest and the best event ever, because I’m going to put everything that I have in this event, and already all the people from all around the world who’ve attended my events are all starting to RSVP for this event. You don’t want to miss this one because unfortunately, I’m not going to be able to do another one like it. So go to titaniumsuccess.com right now and sign up for Titanium Live. I would love to see you there. This is the last one. Let’s have a huge, huge, exciting, amazing event and go out with a bang.
This is Titanium Life Radio with your host, peak performance speaker and business coach, Arman Sadeghi.
The wealthiest people I know for the most part have made most of their wealth from real estate. Yes, even some of the most successful business owners I know who’ve had businesses have made most of their money from real estate. The best example always is McDonalds. People think that McDonalds as a burger joint. McDonalds is not a burger joint and that is not how they built their massive empire. McDonalds is essentially a real estate company. It’s the real estate that has allowed McDonalds to succeed the way that it has and in fact, I know business owners who’ve had companies that have gone bankrupt, right? They’ve lost everything, yet they’ve actually made money during that time from that business by owning the building that the company was in. I’ve seen this with people close to me. I’ve seen stories of it all over the place. Real estate is and always will be the biggest secret to building wealth.
If you think back from way, way long ago – tens of thousands of years ago – real estate was always the most important thing, right? As a caveman, your real estate was your cave. In villages, right? Real estate involved where were the rivers at and what areas did they take, and where they have crops and things like that. So today, it’s no secret that every single human being, we live in this world where it’s all about real estate, and the secret to building wealth is through real estate. So don’t listen to what people tell you, forget what happened when the real estate market fell and people lost everything. Those people lost everything because they made bad investment choices.
See, it’s not about real estate. Real estate didn’t fail, people failed. People failed to make good choice. Now, don’t get me wrong. There were a lot of people out there who were doing things to trick people and to lead people down the wrong path. But at the end of the day, the reality is that people who lost money in real estate lost money because they made mistakes, not because the real estate market crashed. Because the real estate market went down and it’s recovered since then in most areas and gone way higher than it used to be in certain areas.
So the real estate market’s always going to have these ups and downs, but understand it could be residential real estate, commercial real estate, it can be land. Whatever it is, understand that the wealthiest people in the world often have made a lot of their wealth from real estate, and especially when you look at people, not necessarily the biggest billionaires out there, although trust me: they’ve built a lot of their wealth from real estate as well.
But when you look at people who we’d traditionally consider wealthy, you know, you look at the wealthiest people in any city, and most often those people have made their money from real estate regardless of what they do for a living. So let’s talk about real estate and why is it that real estate creates so much wealth? Well, one of those things I already shared with you, because you can buy real estate with a minimal down payment, right? There are very few things in the world where you can get that kind of leverage as you can in real estate. Now, be careful because a lot of people who lost everything lost everything because they overleveraged. But understand that with real estate, you can go out there and with a certain percentage down – and in fact for some of you, if you’re a first-time homebuyer, can you believe you can get a house for like three percent down? That’s insane! Yet someone will give you a half a million-dollar home.
Think about this for a second. You can buy a $500,000 house if you can get a three percent loan, which I believe depending on where you’re at, where you’re listening to this in the United States at least, you can often get first-time homebuyer loans with three percent down. That means for $15,000 you can buy a half a million-dollar home. Now, you have to get approved with your credit and your income and all that stuff, but it’s pretty amazing. Fifteen thousand dollars gets you a half a million-dollar home. So if that house doubles in value from half a million dollars to a million dollars – or forget doubling in value.
Even if it goes up by 10 percent – goes from $500,000 to $550,000, you have more than tripled your investment. Yes, it’s incredible! The power of this stuff is just out of this world. And the beauty with real estate is that it’s been shown over time that real estate very, very, very rarely loses value over time. In fact, over a very, very long time, it basically never loses value, but yes, there are war zones and there are economic things that happen in short periods of time and cities that go down. But in the long term, real estate very rarely loses value, especially if you’re intelligent about where you invest it, what type of real estate you invest in.
Now, I’m not a real estate expert. I’m not sitting here telling you how to invest in real estate. But what I want you to understand is the key to financial success in the long run is you’re going to have to learn how to play this real estate game. And if you can live in a house and own it, gosh, that makes so much more sense than paying someone else rent, right? Imagine, when you pay rent, you’re paying money to someone, you’re never going to get a dollar of it back. But if you can own the house that you live in, eventually when you pay that loan off 15 years, 30 years, whatever it is, that house is yours and you get to keep it for the rest of your life and you don’t have to keep making those payments. And in most cases, it’s going to go up in value significantly.
Or, if you can buy a property to rent out, whether it’s a house, a condo, an apartment complex, a commercial thing, a shopping center – whatever it is – imagine, people are paying you rent and often that rent can be enough in a lot of cases to actually make your payments so you could have something be cash flow neutral or even cash flow positive. But even if you’re cash flow neutral, imagine in the long term you get to own that piece of land. Now again, I’m not here to teach you how to do it; I’m here to inspire you to get out there and want to do this. It’s one of the most important things you can do to build wealth for yourself.
And if you’re a business owner, same thing for you. If you own a business, consider how you can figure out owning the building that you work out of, especially if you have a large space, right? If you’re a doctor, you could be a dentist. It doesn’t matter. You could be in any business. If you can own the building or own the space that you’re in, it’s huge because then, even though your business is progressing and moving forward and you’re paying rent – right now you pay rent, right? If that rent every month instead is a mortgage you’re paying, eventually that building will be yours and most importantly, as the building gains value, the value of that building goes up. That’s just money in the piggy bank for you. That’s your future. That’s what you could possibly retire off of. And God forbid, even if the business fails – as I said before, I have numerous examples of people I’ve seen around me where their businesses have massively failed. But because they own the building, they did just fine in the long run.
So get out there today, understand the power of real estate, and we’re getting close to finishing this six-part series on finances, and it all started with us talking about the fact that I said the American Dream was a lie. Because people tell you you’re going to work hard, you’re going to make money, you’re going to save your money, and eventually one day you’re going to be rich and wealthy and blah, blah, blah, and free. Not true. So I told you, you’re never going to make enough money to be able to retire one day, because if you’re just trying to make money and save it, for most human beings, it’s a game that you cannot possibly win, because as you make more, you’re going to spend more.
Then we talked about how you’ve got to start cutting expenses, and I said you’ve got to keep score and acquire assets and not liabilities. And then I told you when you’re buying assets, how by applying this concept of compound interest, right? The Titanium Seven Year Rule gives you this massive power. And then we talked about how to invest in the stock market and today we’re talking about real estate. There’s one part left to this and that’s credit repair that we’re going to talk about in the next episode, but I’m excited to share this knowledge with you guys. Understand, again, the wealthiest Americans and the wealthiest people in the world, the wealthiest people in your city, most of them have made a lot of their wealth from real estate, and it’s the part of your wealth that happens when you’re sleeping. It builds on itself while you sleep. So regardless of what you’ve seen around you, please don’t give up on real estate. It has always been and will always be the best investment that you can make if you do it properly. Get out there, buy some real estate if you can. If not, educate yourself on real estate so you can understand it better, and always lead with your heart.
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Do you have a question you’ve been dying ask me about your business, about health, fitness, finances, relationships, whatever it may be? Go to my social media right now and ask me your question, and I’m going to answer it on a future episode. You can always follow me on Facebook, Twitter, and Instagram @titaniumsuccess. So reach out to me and I’ll make sure to get your questions answered on a future episode. Don’t forget to check out our website: www.titaniumsuccess.com, or you can always email me: firstname.lastname@example.org. I love hearing from you guys and my website is a wealth of knowledge about business, fitness, finances – everything else you can imagine that goes along with these podcasts, so please go check that out now: www.titaniumsuccess.com.
Thanks for listening to Titanium Life Radio with Arman Sadeghi, here on the Apollo Podcast Network. For more information or to subscribe to this podcast, visit titaniumsuccess.com/podcast.
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