On this podcast episode I talk about how to create wealth by investing in real estate. Every day, I speak to new students that want to learn how to create a life of financial freedom. This podcast episode addresses how to create wealth by explaining that in order to have financial freedom, you first need to create wealth. And the surest way to create wealth is by buying rental properties. On this episode, I talk about a house that I recently purchased which is being refinanced this week. Here are the details on this house: My purchase price was 102k Rehab cost was 15k currently rented for $1,300 per month Current appraisal value 160k When I purchased this house a few months ago, I borrowed 90k from a lender and put down the other $12,000. I then spent $15,000 of my own money to remodel the property. After the renovations were complete I rented the property for $1,300 per month. Now that the property is stabilized I want to put long term financing in place. I like 15 year mortgages since they pay down in half the time (compared to a 30 year fixed) and the rates are better. My mortgage broker offered me this loan: $100,000 loan 15 year fixed rate mortgage at 3% interest Monthly payment of $691 Property taxes are $116 per month Insurance is $108 per month Total monthly payment is $915 per month Current rent is $1,300 per month Positive cash flow is $385 per month If the property appreciates at just 4.8% appreciation rate, then the value of the property doubles in 15 years to $320,000. And after 15 years, the mortgage will be paid off and I will own the house free and clear (with no debt). If rents also increase at just 4.8% per year, then the rent will also double in 15 years to $2,600 per month (which is $31,200 per year in income). And with current tax law, you can get a tax deduction for depreciation of as much as $16,000 if you do a cost segregation study (consult with your CPA on this accelerated depreciation method). If you want to create wealth, all you need to do is buy houses, fix them up, rent them out and get 15 year fixed rate mortgages. This is the surest way to create wealth for you and your family. Enjoy the podcast!