Updated almost 8 years ago on . Most recent reply
Rich don't sell, they leverage
Ive heard many times: "Rich dont sell, they leverage".
Than a lot of other people do "Buy low, sell high" sort of thing...
What is the benefit of never selling? Lets say you have a 100 year old house that is not in a super great shape, would not it makes sense to sell it when market is up and buy something newer?
I guess what are the advantages of never selling?
Lets say you dont want to sell...You refinance it again, but then you may be get stuck with a property that you have a mortgage on for 100K but its worth 50K because the market is down and you refinanced it when the market was high, and now you have a problem..
I am trying to see if I am missing something...
Thank you, guys
Most Popular Reply
#5 All Forums Contributor
- Plymouth, MI
What you're missing are the 2 most important concepts of all...and they trump the rest.
Concept #1: "The Wealthy own nothing, but control everything".
It's not about being rich, or about ownership, it's about control...and control costs you "nothing". What you need to have control is the mindset that money is a verb not a noun. It must keep moving. The more it moves, the more it touches. The more things it touches, the more you can control.
Equity, bought by the investor, is dead money...mainly, because it stops moving. Equity, bought by the tenant in a property you control, is free money...to be accessed later.
Concept #2: When Einstein was asked, "What was the greatest invention of the 20th century"... he answered, "Compound Interest". What he said after that was more important. He said, "Those that understand it, will live off of those that don't". This concept is the secret to great wealth...and infinite control.