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FAST CLASS: Start Late, Finish Rich

Lesson 12 of 18

Be A Homeowner Not A Renter

David Bach

FAST CLASS: Start Late, Finish Rich

David Bach

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Lesson Info

12. Be A Homeowner Not A Renter

Lesson Info

Be A Homeowner Not A Renter

probably one of my favorite topics other than pay yourself first is be a home run or not a runner. So I am an unabashed crusader campaigner, believer in real estate from home ownership period, and then it never changes. So, like one of the great recession, it and home prices were going down. And people are like, Oh, what do you mean? Homeowners have now, like I think it's on sale. Like I think I could go to Miami and Las Vegas in San Francisco, in New York and all these places in Arizona and now owns Air off 50%. I think the smart investment that you'll probably ever make in your lifetime is the homes that you buy and living. So I've made a whole lot of money from investing and the most money that made buying a house and living in it the best investment you're gonna make a home to live in. This is like the return of real estate guys. Real estate always returns. Here's what you should know. Here's the truth. This is really important for millennials. Okay, so this is an old slide. I'm go...

nna show you the new slab 1963. Real estate was $18,000 for a house. Remember I told you that my parents bought their first home. It was $27,000. Oakland, California Nice house to, uh, average price of a home. We're looking at $204,000 in 2011. By the way, you can see here. Market went up. Market came down. I do interviews. People like markets. Real estate is never coming back again. Really? Here we are. Here is the real estate market. It hasn't come back again. We're now at 2 90 in for an average price. How many of you dry? Always. Just. Most people today are driving cars that caused more than a home cost in 1963. So here's the benefits of real estate, you guys. It's pretty darn simple. Number one. It's forced savings. So 64% of Americans on a home all kinds attention to the fact that's less than it's ever been. It's only 3% less than it used to be. Um, it's leverage the house that I bought with my buddy. We didn't put down $225,000. We put down 12,500 each. And we borrowed 2000 from the bank and we got leverage, which is called other people's money, otherwise known as the bank's money. Um, we got tax breaks. You get tax breaks. One of the best tax breaks left in America is a mortgage deduction. Probably don't think it's going away. Um, actually, I don't think going away. I don't think more deductions are ever going away. I think they think that this is too big of a deal in America. You also can by a home, sell it and get told tax free games. So when you're single, you can sell home, make $250,000. If you're single and not pay taxes, there's nothing else you could do that with. You can be married and you can sell it. Can you get 1/2 a $1,000, in gains? And you could do that every two years. I talked about that start late, finish rich. You get the pride of ownership just tends to feel better owning something than renting. Um, it can be more work. Not gonna you know, there's no doubt like the beauty of renting when things go wrong is it's not your problem. Real estate proves to be a great investment. Just does. I just showed it to you. You also can't get rich. Renting the average renter in America is worth less than $5000 in the average homeowner today is worth over $172,000. Uh, these numbers vary from year to year, but on average, homeowners are worth 31 to 46 times more, then ruptures. So millennials talking to you right now, the single biggest mistake that millennials are making financially is putting off buying a home, and part of it's because it's expensive by home. But it was expensive by home when I bought a house. You gotta scrape and scrap, borrow and figure it out, and sometimes you do it with friends. You're not buying a dream home, but you have to get in the game of real estate because real estate is the escalator to wealth. And if you're in a good location in CS clear, that goes a lot faster now. Not all markets do what, a San Francisco or New York or Chicago or San Diego? Our Air monologues markets Dio so depends on your market also. So, a mortgage payment Here you take a $300,000 mortgage and you have a $1500 a month mortgage payment. If you pay 7 50 every two weeks, what happens is you make one extra payment a year. And so, in this example, that mortgage at 4.5% this is a recent calculation. Where to run it Bankrate, A $3000 mortgage of 4.5%. You're going to save $40, pay the mortgage off in 25 years. All you did was take your mortgage payments split in half, pay off every two weeks. This is where you should all go now. I've talked about this for over a decade. When the automatic Miller came out, I talked about this so you would think everybody does this. It's still a really small percentage. It's a great technique. Most banks now offer it. So call your bank and see, Do they offer a bi weekly payment plan? Uh, in most cases, they're not charging for it now, and I think it will help you pay your home off earlier. Let me tell you something, guys. A lot of people are retiring off their homes. They're selling their homes and expensive cities and their relocated people relocating from California. Where they going? Tell me where they going. Sounds Kota, Denver, Oregon, Arizona, you say, boss Pfosten, Las Vegas, Reno. They're going to all these places They're selling their home that they paid 1/4 $1,000,000 for It's worth a 1,000, today. It's the primary savings vehicle. They're selling it tax free. They're moving over in Arizona, they're bonded $200 nor home, and they're taking $70,000 they're putting in investment down there. Living off the interest happens every single day. If your home and your renting 30 years from now and you keep renting, it's not happening to you. So you have to be in the game of home ownership. Um, which takes me to these are all the benefits of the biweekly mortgage plan. It's faster. It's easier. It's automatic. I want to go into how to go from homeowner to automatic milliner homeowner going to do what you were just sex. So how do you how do the McIntyre's do it? They bought a home. They paid the mortgage down that home. Now. Cash flowed so they could rent it. They took a little bit of home equity out of that property, and they used it to buy another home on the same street. And that's how they bought the next house. He only had two homes and interesting. They bought it on the same street. They didn't do what most people do. So most people America, they buy a starter house. So they buy a three bedroom, two bath house. Over time, they build a family. Then they buy a bigger house, so they sell their home and then they go and get a bigger more is in a bigger home, which can work, but it doesn't lead to owning rental properties. So if you're going to ever pull equity out of your house, the only thing I want you to pluck would you have your house for Is it up asset? Not a liability. I want you to pull equity out to buy an investment, not to pay off a credit card

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A proven, insanely simple plan to get out of debt, fix your financial life, and achieve your financial dreams— no matter where you are on the financial spectrum— “Start Late, Finish Rich’” is a one-day program that has helped millions and can help you achieve your best financial year ever.

Author of nine New York Times bestsellers, including #1 New York Times bestsellers Start Late, Finish Rich, and The Automatic Millionaire, David Bach will teach you why it's never too late to live and finish rich. He will also share the secrets to becoming an “Automatic Millionaire” and how ordinary people with average incomes can achieve extraordinary wealth.

You’ll learn the basics of financial responsibility, and quick, specific actionable steps to help you increase your savings, improve your investment returns, and crush your debt. David will show you why you’re already richer than you think.

In this class you will learn:

  • How to build financial security starting with as little as $5 a day
  • The #1 Millionaire Habit that changes everything
  • Why budgets don’t work and almost guarantee failure
  • The secret to having a “retirement, dream and security” account
  • How to become rich faster, as a freelancer or small business owner
  • How to organize all your financial information, using the “Finish Rich” file folder system
  • How to create an “Automatic Millionaire Blueprint” system to automate your financial life forever
  • How to create a retirement plan that works “automatically”
  • Why you need a will and what needs to go in that will
  • How couples can work on their finances together and not fight about money
  • Why women must take charge of their financial future today, and what’s the fastest way to own your financial power

Whether you are in debt, living paycheck to paycheck or simply feeling behind schedule on your savings and retirement dreams, David Bach has helped millions take charge of their financial life and he can help you, too.

The proof is in the numbers. With over seven million books in circulation around the world, over a million students, and over a hundred appearances on NBC’s Today Show, David’s teachings work. This one-day program takes a true deep-dive, change-your-life, comprehensive approach to fix, crush, and handle your financial life and financial worries once and for all. It’s never too late to live your dreams.

WARNING: This is NOT a get-rich-quick program but rather a timeless, simple approach to money that anyone can act on in minutes. If you are looking for an “earn more money program, make money online, get rich in days not decades,” this course is not for you. If you want to learn in a fast, fun, and non-judgmental environment, how to build financial security for life, then this is for you. David tells it like it is, and he empowers you to take action now.

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Automatic Millionaire Starter Kit

Finish Rich Quickstart System

Pay Yourself First Graphic

12 Steps to Live & Finish Rich Graphic

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