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Real estate is something that is best done over a long period of time. It’s a long game. I would say it’s a five to 10 year game minimum in the longterm. If you’re short term, if you’re flipping, maybe it’s six months. If you’re wholesaling, maybe it’s 30 days. So there’s a couple of different plays. Now people get wealthy and people get rich in the long game. So this, this video is about why you shouldn’t wait to get into real estate. Why you got to get going now.
Now before we talk about this, there’s three fundamentals you have to have for your real estate to be good.
The first thing is you have to have an industry in your areas. There has to be jobs. If there’s jobs and the jobs that are getting good, that’s good for you. Second thing, you need net migration. People moving into the area. If there’s jobs, people are probably moving in. That’s why the government’s was like jobs. Jobs, jobs will create jobs. We need jobs. Fundamentally over time. I’ve got a 28 year graph. Real estate looks like this over 28 years. The government usually is printing money because the government doesn’t know how to make value. The government doesn’t know how to make jobs, so what they do is they keep printing money so they can have stuff for free. That’s how the government works. If you want to know more about that, read a book called the creature from Jekyll Island. You put, say you buy one little house here, you buy a house for let’s say a hundred grand. Okay? Let’s say you put 20 grand down. You’ve got an $80,000 mortgage, so there’s a little house. In theory that was a hundred grand over 30 years with the printing of money will be worth 800,000 you have zero debt. Now you might say, “Oh my God, Stefan and that didn’t have it in my area.” That’s not how it is. 30 years ago would have been a hundred grand is now worth almost 800 I know in my own parents’ home, I think they bought it for 150 grand back in the day in the nineties today in 2019 the house next door was trading at six 50 and that is 90 that’s about 30 years, so the house I grew up in was 150,000 where I was back then. Today’s were six 50 so that’s pretty close in the world of doubling money with every 10 years the getting the real estate doubling or so, and you got printing of government money, you got deck going down.
Now if this house is paying a constant cash flow, let’s say you’ve got an income suite and there’s cashflow coming out every month, that’s really, really great. The building I’m standing in here is actually the first property I ever bought to live in. I keep my office in here right now and what’s great about that is because I have an income suite in the house or the building right now, it’s an office. It’s not a house because I have this money coming in every month over my life. I can pay this asset off three times. I can read mortgage and take money out tax free three times, and this asset to me is where I think it was like two point $3 million over my lifetime because I could read mortgage at three times, pull the money out three times invested three times.
So something to consider is you want to buy your real estate as soon as possible and you want to ride out these waves. Even if you bought it, let’s say even if you bought it here at the high market, at the high point in the market and you wrote it down and then wrote it back up, you’ll be ahead. So you have to have a longterm play here. Five to 10 years is what you want or your real estate and that’s why you want to get in sooner. Write it out, have good properties and good land, good dirt under the building and you will do amazing.