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Part II - 5 Ways the Rich Make Money with Debt

By Lainie Eilenberger, Real Estate Agent for Key and Slate Real Estate Group


Well howdy y'all! It's me, Lainie Eilenberger, expert real estate agent with Key and Slate Real Estate Group, back with Part II of our discussion on 5 Ways Wealthy People Make Money With Debt. In case you missed Part I, let me give y'all a quick recap: investing in real estate, refinancing, and renting out your homes are all ways to grow your wealth with debt. And when it comes to investing in real estate, wealthy people know that it's the top way to increase your wealth over time.


Now, let's dive a little deeper into these concepts and talk about how you can use them to your advantage.


First off, let's talk about real estate investing. As I mentioned before, real estate has proven time and time again to be a smart investment. According to Forbes, real estate has outperformed the stock market over the long term, with an average annual return of 11.42% for commercial real estate and 6.6% for residential real estate. And CNBC reports that real estate has created more millionaires than any other asset class.


But it's not just any real estate that's going to make you wealthy. You have to be smart about what you invest in and where. Lucky for us West Texans, the real estate market in our neck of the woods is booming. Cities like Lubbock, Plainview, Lamesa, Levelland, Littlefield, Seminole, Wolfforth, Shallowater, and Ralls are all great places to invest in real estate. In fact, Lubbock was ranked as the #1 hottest real estate market in the nation by Realtor.com in 2020!


When it comes to financing your real estate investments, there are a variety of options available. Traditional mortgages are the most common, but there are also FHA loans, VA loans, and even special programs for first-time homebuyers. And if you already own a home, refinancing can be a smart way to free up cash for more investments or to lower your monthly payments.


But what about renting? As I mentioned in Part I, renting is like paying 100% interest because you're not gaining any equity or ownership in the property. However, there is a way to make money off of renting: by owning properties and renting them out. This is called passive income, and it's a smart way to grow your wealth over time. The key is to make sure that your rental income exceeds your expenses, including mortgage payments, maintenance costs, and property taxes.


And of course, I can't talk about real estate without giving a shoutout to my own website, www.lainieeilenberger.com. It's the best place to find information about buying and selling homes in West Texas, and my blog at https://keyandslate.weselllubbock.com/blog.php is chock-full of helpful tips and advice.


So there you have it, folks. Part II of our discussion on 5 Ways Wealthy People Make Money With Debt. Remember, real estate is a smart investment, especially in booming markets like ours here in West Texas. And if you're ready to make your move, don't forget to give me a call. I'm here to help you make the most of your real estate investments and grow your wealth over time.


Note - I provide real estate services to all of West Texas, including Lubbock, Abernathy, Brownfield, Buffalo Springs, Crosbyton, Denver City, Farwell, Floydada, Hale Center, Lamesa, Levelland, Littlefield, Muleshoe, New Deal, New Home, Olton, Plains, Post, Ralls, Ransom Canyon, Seagraves, Seminole, Silverton, Slaton, Snyder, Spur, Sudan, Sundown, Tahoka, Tulia, or Wolfforth.




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