If I gave you a job where you made 1 cent the first day, 2 cents the second day, 4 cents the third day, 8 cents the 4th day etc. doubling for 30 days would you take the job? If not you would lose out on $5,368,709.12. That is the best illustration of the principle of compounding I know of. Here is another one. When you make your first payment on your mortgage almost your entire payment is interest. When you make you last payment on your mortgage almost your entire payment is principal. The more payments you make the more principal is paid off with each payment. If you have one property with a tenant you don't make a lot of money every month. But that amount increases as time passes. Now imagine if you have 20 of those properties that you only make a little on. Now imagine that you have owned them for 10 years. You are no longer making money. You are building wealth. You are using OPM to create security and wealth for you and your family. What is OPM? Other People's Money. In Real Estate investment slow and steady wins the race.
Real Estate is not get rich quick...slow and steady wins the race.
- July 8, 2015