How should I view debt?

[Daisja Vance]

Hello, amazing community!! So I have a question and I want the most blunt response, when starting out with investments how do I look at debt? I have started getting into business credit and I've been told when getting funds for any investment don't be scared of the debt, that all business owners have debt, and" the richest people are in debt" well as crazy as it initially sounded to me I've pondered on what to take from it. I honestly thought about the USA and how we have this great economy overall in history yet have just about the hugest debt as well right? So are the richest people in debt? I've warped my cerebrum trying to grasp the logic so how does it work for you guys? Has anyone started on just loans and if so would you mind sharing which kinds of loans and were they business loans? Leaping into this so excited to learn new things I have become consumed by questions I just enjoy seeing it from other perspectives if anybody has time to share theirs Im beyond thrilled to read.

[V.G Jason]

Debt is a slippery slope and a sliding scale. Use it to scale into a healthy, appropriately managed portfolio and reduce from there. This could mean 5 properties for you or 15. But do an appropriate amount to get yourself wealthy, then start understanding the underlying risks of debt and do your best to get rid of it.

Don't leverage yourself too quickly or inappropriately. Always keep enough cash in the bank to cover yourself, family, and investments for a manageable amount of time without NEEDING to sell anything.

My recommendation for folks that have regular W2s is to get into the 3-5 house, so smaller ish portfolio, with more quality than quantity locations. Ride it for 2-4 years, then add 1-2 houses in that portfolio no more in that mean time. Go for quality again, over quantity.  Start angling to which you 1-2 believe in 5-10 years(I know this is a hard part) will yield the best return versus hold. So not your very best house, or worst, but likely you're middle one or 2nd best one. Start trying to recast, not refi, the other properties besides these two, and in 5-10 years sell 1 or 2 properties pay down as much as debt as you can with that.  You'll have 3-5 properties with significantly less debt or no debt, that's something 99% of the world wishes to achieve.