Why Debt Will Make You Wealthy

On this podcast episode I talk about why borrowing money to buy real estate will make you wealthy, and why you should not be afraid of borrowing money and debt (for real estate). The most common thing that I hear from new and beginning real estate investors is that they don’t have any money to get started. Remember that the benefit of investing in real estate is compounded by the more you are able to borrow to buy that real estate. You are not supposed to buy real estate with your money. You are supposed to use borrowed money from investors and private lenders to buy real estate. If you buy your real estate right (at a discount) then you should be able to cash out refinance more money than was put into the property. And if you want to get the maximum tax benefits, leverage and returns on your investment then you have to use as much borrowed money as possible. In an ideal scenario you should try and find private lender’s that will fund your purchase AND your repairs so that your cash out of pocket is as little as possible. When you use private lender’s money to fuel your purchase of real estate, then your returns are substantially magnified and you have no limit to how much real estate you can buy. You are only limited by how much money you can borrow and how many investors you have. You are also limited by how many houses you can find that you can buy at a discount (that’s the real challenge). In order to find houses to buy on a consistent basis, you will need to be marketing all of the time. That means direct mail, pay per click, outbound dialing, Facebook ads, Google Ads and your website(s) producing a constant stream of motivated seller leads. For this podcast episode I use an example of a house that I purchased back in 2009 for just $35,000. This house was a bank owned property and was purchased directly from the bank. I use this example of an actual property that I own to show you the wealth creation benefit of buying real estate with other people’s money. And I show you the benefits of what can happen if you hold it for the long term (in this example 10 years). I share with you how I purchased this property without using any of my own cash, and how after purchasing and renting this property out I still had $10,000 left over. I show you how much I borrowed, and how I put $20,000 in my pocket from lease options while I held on to this property. My purchase price was $35,000. My cash out of pocket was zero. My cash in pocket was $30,000. Today the property is worth 5 times that ($175,000). And I still own it! If you want to create real wealth (millions of dollars), you will need to learn how to buy a lot of real estate with other people’s money. And in order to do that you will need to get over the fear of borrowing money. Why? Because debt will make you wealthy. However borrowing money to buy real estate will only work for you if you buy the real estate at the right price. That means you have to buy at a discount to market value. That’s the real challenge. Learning how to buy real estate at a discount – which is why I focus on teaching this at my Wholesaling Real Estate Boot Camp. If you are brand new to real estate and want to learn more about how to wholesale real estate and flip houses then please register for the free wholesaling real estate training at this link below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses I have a fix and flip training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON’T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad https://plus.google.com/+LexLevinradrealestate DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best selling book “Wholesaling Bank Owned Properties” at https://www.lexlevinrad.com

Hear What Recent Listeners Have to Say About Our Podcast

Incredible podcast!

This podcast is a must listen for anyone looking to level up their real estate investing strategies! Lex is a great host and his conversations with guests reveal everything you need to know to succeed.


Amazing Content!

Lex does such a good job covering a variety of topics. The guests offer valuable insight as well. I would recommend this podcast to anyone looking to be inspired and informed!


Absolutely Top Class!!!!

Excellent content from one of the top boots on the ground investor. Personally changed my life and my Real Estate investing career. Many thanks Lex for providing amazing content, mentorship and for sharing your knowledge and real world experience.


Invest like the best!

Whether you're a seasoned real estate investor or just dipping your toes in, Lex is the guy you want in your corner - and your headphones! I cannot tell you how much I've learned from this show. Thanks a million, Lex!

Arlie K

Excellent Content!!!!!

This is a wonderful podcast to listen to with such valuable content. I was very interested to listen to your take on why one should purchase rental property.


Best real estate investor podcast.

Lex gives you real tips with actual names of multiple sites and services to use from the beginner up to advanced. I feel he’s giving away his classes for free on the podcast. Most podcasts stop short of details and give generic advice unless you join there groups.


The Real Deal!

I’ve been looking to get into the world of real estate investing but everyone I ask gives me answers that makes it all sound way too easy. This podcast gives you the real deal. More please!

Anna B David

Great show for beginners or experts!

As an amateur flipper since I was in my teens, I kind of have gotten pretty good at identifying great opportunities and taking advantage of them. But, Lex dives much deeper and gives actionable tips on how to make sure you are looking at everthing before making any decisions. I'm hooked!

Mitche Graf

Be Prepared to Learn!

Two words: Information Dense. Sweet Moses. I’ve listened to other real estate investing podcasts but this by far is the most practical, the most hands-on podcast I have heard to date. You can tell that the host, Lex, is very passionate about real estate investing. That passion with his experience translates into an excellent podcast. He shares theory about a topic and then tells a story about his experiences in the real world. That to me is gold!

Cliff Duvernois