youtu.be
The video discusses the number one secret of wealthy people, which is leveraging debt to buy assets that produce cash and grow in value. The speaker emphasizes that going into good debt, such as real estate debt, is the key to creating wealth. He distinguishes between good debt, which is used to buy assets that produce cash and grow in value, and bad debt, which is used to buy things that do not pay you at all and go down in value. The speaker uses himself as an example and shows real-life numbers on a whiteboard to prove his point. He cites examples of successful companies like Amazon and Facebook that started by taking on debt from investors to buy assets and grow their businesses.
The speaker emphasizes that leveraging debt is the key to creating wealth and becoming financially free. He uses real estate as an example of how to do this, explaining that you can get into debt to buy assets that produce cash and grow in value, and then use that cash to pay off the debt. He uses himself as an example, stating that he is in 13 million dollars worth of debt, but every dime of that debt is tied to an asset that produces cash and grows in value. He emphasizes that going into good debt is the only way to create generational wealth and become financially free.
The speaker uses his personal experience to illustrate the benefits of leveraging debt to buy assets that produce cash and grow in value. He explains that he is in 13 million dollars worth of debt, but this allows him to own 21 million dollars worth of real estate. He emphasizes that he gets all the benefits of owning the real estate, including appreciation, cash flow, and tax benefits. The speaker then projects into the future, stating that if he were to stop buying real estate today, he would still have 21 million dollars worth of real estate and 13 million dollars worth of debt in 12 years when he is 45.
The speaker projects into the future, stating that the real estate will go up in value, and conservatively estimates that it will be worth around 35 million dollars. He estimates that the 8 million dollars worth of equity he currently has will turn into 27 million dollars, and that the real estate will be worth 50 million dollars by the time it is paid off. The speaker encourages viewers to learn how to leverage debt to buy real estate and become wealthy, emphasizing that it is possible for anyone to do so.
The video discusses the number one secret of wealthy people, which is leveraging debt to buy assets