I’m often asked, “How can I get rich in real estate?”
Behind this question is a different question: “How can I get the money I need to invest in real estate?”
More often than not, the people asking me these questions have had ingrained into them from an early age that saving was a means to getting rich and that if they wanted to invest, they needed to use their own money.
Both are myths that I want to discuss as a foundation on how the rich use debt to get rich in real estate — and how you can too.
There’s no doubt about it, from an early age we teach our children the value of saving money.
“A penny saved is a penny earned,” we chime. And when they are a bit older, we spin tales of the magic of compounding interest. Save enough, children are told, and you’ll be a millionaire by the time you’re ready to retire.
Of course, we don’t tell them about historically low interest rates.