By: Stefan Aarnio
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I hope you are enjoying these last few blog posts on investing. In this post I am going to answer one question I always get asked, “Should I use my money for my investments or should I use other people’s money for my investments?”
Personally, I never use my money for my investments. The money that I make goes into things that are un-investable.
Now an univestable investment could be a book I write. My money goes into the book, because I’m not going to go raise money from an investor for a book.
I am going to put my money into the book, and someone else’s money is going to go into my real estate deals, because real estate deals are highly investable. People want to invest in real estate, they like real estate, they like the returns.
So use your money for things that aren’t investable, and use somebody else’s money for investable things like real estate.
That’s how I like to differentiate that.
Think about this. If you’re into a deal for no money, you’re making an infinite return.
On the other hand, if you take your money and put into something that’s uninvestable, maybe some marketing, a book, your education, or something like that, that thing could one day be worth nothing, it could go to zero, you didn’t lose anybody’s money, and that’s okay.
Whereas in real estate, it’s very unlikely to lose money, so you can invest into real estate fairly safely with someone else’s money and make a nice return for both of you.
That is why I always recommend using your money to invest in yourself, invest in your education, into your marketing, and even a business start up. Invest money from your investors into your real estate deals.
If you like these blog posts, go pick up a copy of my book “Self Made.” You can get it here.
You’re going to love the book. If you don’t love it, give it to someone who does, and I’ll give you your money back.
Respect The Grind,
P.S. Please share article if you found it enjoyable.
P.P.S. Make sure you come back Thursday morning. While we are on the subject of investing, I will reveal how to use leverage to build your wealth. Don’t miss it.
Get Stefan Aarnio’s NEW book Self Made at SelfMadeConfessions.com