March 4, 2025 • 24 mins
Is debt really the enemy? In this episode, I break the myth that all debt is bad and show you how smart borrowing can be a powerful tool for building wealth. Learn how good debt can fuel real estate investments, business growth, and financial freedom when used strategically.
What You’ll Learn:
- Good Debt vs. Bad Debt – What’s the difference and why it matters
- How to Overcome the Fear of Debt and use it to your advantage
- Real Estate Investing & Rental Income – Leveraging debt for passive income
- Tax Benefits of Using Debt Wisely to maximize your financial gains
- The Power of Financial Education & Community for wealth-building
- Practical Strategies to Use Debt Effectively in your financial journey
Tune in now to transform your mindset and learn how to make debt work for you!
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Disclaimer:
I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Please consult a licensed professional before making any financial decisions. I shall not be held liable for any losses you may incur for information provided in this video. Please be careful! This video is for general information purposes only and is not financial advice.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
you have to get into debt to build wealth.
Uh, sounds scary, right,because we are taught to avoid
debt, but we have to change ourmindsets and learn how to
leverage debt to build wealth.
Hola mi gente, welcome to themoney chisme podcast, where we
(00:22):
spill the real chisme onbuilding wealth without the
bullshit.
Whether you're trying to invest, grow that side hustle, finally
, get your money right or, myfavorite, buy rental properties,
you're in the right place.
I'm your host, violeta, afirst-gen Mexican immigrant,
real estate investor,entrepreneur and your financial
(00:45):
hype woman.
Get ready for tips, tricks andexpert advice straight from
nuestra comunidad, porque eldinero es power and we're here
to claim it.
Don't forget, you can alwaysfind helpful resources down in
the show notes and indescriptions, so make sure you
check that out.
And in descriptions, so makesure you check that out.
(01:08):
Hola, hola, welcome to anotherepisode of the money chisme
podcast.
Ahora we are going to betalking about debt and you know,
cuando you think about debt, itis a negative thing.
Right, we're taught to avoiddebt.
That debt is bad and sometimesit's.
You know, people put a moralvalue to debt, like it's immoral
(01:29):
to have debt, and in reality,we need to understand the
difference between a good debtversus bad debt.
And so, to get this episodestarted, I want to start off
with a mantra, and the mantra isdebt used wisely makes me rich.
(01:50):
Consumer debt makes me broke.
So let that sink in for alittle bit, and that's what
we're going to talk about today.
Of you know the differencebetween good and bad debt, how
to use debt to your advantage,and how I'm using debt to help
(02:12):
me gain financial freedom andbuild wealth.
But before that, we got tounderstand why we have so much
fear and hesitation when itcomes to debt.
And you know, for example, withme growing up, my dad and my
mom siempre was like you knowwhat?
(02:34):
You have to buy everything incash.
If you cannot, you know, pay itin cash, then you just can't
afford it because you don't wantto use credit cards, you don't
want to get yourself in debt,you don't want to get a loan,
you want to just, um, avoid debtat all costs.
And back then, that kind ofadvice, you know, kind of worked
(02:57):
, right, um, for someone that'sstarting out, especially when
you're not, um, very, uh,financial literate, right, it's,
it's good advice for at thatpoint in time, especially
because I're not very financialliterate.
Right, it's good advice, for atthat point in time, especially
because I was a teenager and Iwas, you know, I was young it's
good advice to like, hey, don'tgo out there and get a whole
bunch of consumer debt, whichthat is bad debt Things like
(03:20):
credit cards, even your car loanand things like that.
That is consumer debt.
That's debt that's not makingmoney or increasing in value or
anything like that.
So I get where you know myfamily was coming from at that
time and for many of us is thesame, the same thing.
(03:41):
We get that type of advice, butthere's never a distinction
between good and bad debt, andthat's where we kind of like get
into this problem when it doescome to using debt to buy things
like rental properties orbusinesses or anything like that
(04:03):
.
And so that's the kind ofmindset shift that I want for us
to have.
After listening Hopefully afteryou listen to this episode, you
start viewing debt in adifferent light, of something
that can be used as a tool tohelp you build wealth, because
(04:24):
the rich people use it all thetime.
For example, they used it as atool to use other people's money
, and you'll hear it like insocial media and stuff like that
, as opm is using other people'smoney to buy assets that are
(04:45):
going to make a return for you.
Right, it's going to bring youincome in some way, and they do
it all the time, and this is howthey can avoid taxes as well,
because it's a debt.
It's not income when they'reborrowing this money and you
could borrow against your ownassets.
(05:06):
So, for example, if I buy aproperty and then later take a
loan on it to buy anotherproperty, I'm starting to build
wealth using the bank's money,versus me selling that property
and getting that tax hit becauseI got.
(05:26):
I sold the property and gotincome.
No, instead I borrowed moneyagainst it that I can deduct the
interest rate from to lower mytax liability and all that stuff
and buy another asset that'sgoing to make me money, and so
that's.
That's one of the ways thatthey use debt to not only buy
(05:47):
assets, build wealth, but alsolower their tax liability, and
it's all legal.
You know you could.
It's just knowing the tax systemand and knowing how to use debt
to your advantage, versus youknow going and get credit cards
and you know maxing them out andall that stuff that's putting
(06:10):
you in debt, that's you'relosing money.
So that's the mindset that weneed to change in our community
of not being scared of debt ingeneral, like it's a healthy
fear, of course, but that shouldbe only for um, consumer debt,
(06:31):
like credit cards and thingslike that.
But we we need to not have thatfear when it comes to borrowing
money to buy, um, you know,assets.
And I find that throughout thisjourney that I've been trying
to teach uh, real estateinvesting to our community
that's one of the biggest issuesis that people are scared to
(06:55):
borrow money to buy a rentalproperty.
They want to buy a cash.
Uh, because that's the mindsetthat we have.
Again, even with my upbringingwas that, hey, save up for it,
buy everything in cash, don't goget a loan and everything like
that.
But it's because we don'tunderstand how a loan works, how
(07:17):
that debt works, what we candeduct like that works, what we
can deduct like that.
You think about the interest,for example, right now, with,
you know, 7% or whatever it isat um nowadays.
I haven't checked, but I boughta property at 6.99.
I think it was, and you knowpeople are like, oh, my God,
(07:40):
that's high interest or whatever.
But and you're getting a loanand you're going to pay this
much by the end of the the uh,the loan term.
By the time you pay it off, youactually paid a lot more or
whatever.
Yeah, but at the same time thehouse is appreciating, um, the
rental income is paying thatmortgage, the interest rate, it.
(08:02):
I can deduct that from myrental income, so I lower my tax
liability, so I pay less taxes.
And so, like we don't know thatpart of it, we just see debt
and interest rate and thatscares a lot of people off from
using debt to buy rentalproperties.
Which quick little plug.
I do go into this in depth inmy rental property bootcamp.
(08:26):
It gives you all the tools andresources and helps you gain the
knowledge so that way you couldgo out there and buy your first
rental property or second orthird with confidence.
So that is linked down below.
It's a self-paced course, so goat your own pace.
And, yeah, get out there andstart investing in real estate.
(08:48):
And so at the beginning I saidthe mantra debt used wisely
makes me rich.
Consumer debt makes me broke.
And, just like I was saying, islearning to use debt to our
advantage.
And I use debt with real estateinvesting.
So I am technically and it'sgonna scare some people 374,000
(09:18):
in debt.
Now that sounds like a lot ofmoney, right, like can you
imagine being that much in debt?
And it it can sound scary.
And when people uh startthinking about buying properties
and using mortgages and loansand stuff like that, it sounds
(09:38):
very scary.
But let me tell you how muchthat those properties in total
are worth is $585,000.
So even though I'm $374,000, Ithink is what I said $1,000 in
debt, those assets are worth$585,000.
(10:00):
And not only that per year it'sgoing to make me $70,000 a year
in rental income.
Now, of course, you know youdeduct expenses and all that
stuff, but that's still moneycoming in because I don't have
to pay it out of my pocket tomaintain this property, to do
repairs, to pay for the taxes.
(10:22):
All that is through the rentalincome that comes in and the
loan is being paid off throughthe rental income I get to
deduct, like how I wasmentioning earlier, even though
I make, you know, bring in$70,000 in rental income, I'm
not paying taxes for that$70,000.
(10:44):
So if I had a W-2 job, aregular 905 job, and I had that
$70,000 a year salary versus therental income, $70,000 in
salary with my W-2, I would paytaxes on that full $70,000.
But with rental income I'm not,because I get to deduct all the
(11:07):
expenses.
The interest of the loan, likeI mentioned, um, the, I always
have a property manager, sothat's an expense, because
rental properties are seen as abusiness.
So every expense that I have to, you know, have to manage that
property, I get to deduct it asa business expense.
(11:29):
So, um, the interest, themaintenance, the, uh, the
property manager, things likethat, all of that I can deduct,
even though I received thatmoney for those things I get to
depreciate the property everyyear.
So again, I talk about that.
(11:49):
Actually, I'll link the episodedown below where I talk about
the tax benefits of real estateinvesting.
I did make an episode on that,so I'll link it below so you
could go in depth of all the taxbenefits with real estate
investing.
But all of that you know, usingdebt I was able to acquire an
asset that is going toappreciate, increase, it's going
(12:13):
to get paid off because withthe income that it's bringing in
, that's income that I could usefor myself as well.
After all the expenses andthings like that also I get some
tax benefits.
I don't have to pay, pay taxeson the whole thing, um, and so
with that, that's more moneythat you get to keep in your
(12:35):
pocket, and so that's how youstart building wealth.
And, um, how to use debt tobuild wealth, to get these
assets so that way you can makeincome, build multiple sources
of income and gain thatfinancial freedom and build
wealth.
And it's the same thing whenyou are building a business.
(12:57):
We have the same fear.
When it comes to runningbusinesses, a lot of us like we
want to just like, um, not goget a loan for our business or
anything like that, because wejust rely on the income that
we're making.
And, uh, that really limits youbecause of the fear of getting
(13:18):
into debt.
But, again, all those benefitsof being able to deduct, like
the interest and all that stuffexpenses, that works for
businesses as well.
Going out there and getting aloan to grow your business is
going to, you know, help bringin more income and you're going
(13:45):
to be able to, like I said, growfaster and more efficiently and
you're able to like outsourcethings so that way you can
better work on your businessversus in your business.
And so, even with businesses.
I see a lot of people don't wantto go get a loan and because,
again, the fear and the negativeview that we have when it comes
(14:07):
to debt but it can hold youback when it's it comes to your
business um, it could take youway longer or you miss out on
opportunities because you're notthere yet, because you're
limited by just the flow thatyou come in and it's used by the
(14:27):
rich all the time.
They go out there and getinvestors or they go out there
and get loans to build theirbusiness so that way they can
grow and make more money.
And so that's what I want ourcommunity to start shifting
their, their mindset andovercoming this fear of debt.
(14:48):
It's a healthy fear, of course,but at this point it it got so
ingrained in us that itespecially because there was, we
didn't draw a line betweenconsumer debt and just what uh,
debt that you used to buy assets, that now any debt is scary and
(15:09):
it's really holding back ourcommunity because we want to
save up for that first property,we want to save up to start
that business, things like that,and instead of going out there
and getting debt, so we continueto behind and and in trail
behind because of that type,that fear of debt, and we need
(15:29):
to get over that if we want toget out here and start, you know
, building wealth and makingchange.
And with that, um, because mydaughter, so I have to go get
her.
I just want to leave you withsome tips on you know, how to
help you overcome and you know,so that way you could get out
there and, you know, start usingdebt to your advantage.
(15:52):
Um, because I was able to do somuch and are I am growing
faster, because if I had to waittill, like you know, be able to
like, get, um, save up for aproperty, like I would still be
with my first property, and nowI'm on property number three,
technically number six, but Isold the first three ones.
(16:15):
Uh, so you know, the first thingis just really just educate
yourself, learn about how debtis used, the difference between
good debt and bad debt, how youcan use debt to buy assets, and,
like there's so many resourcesout there, for example, this
(16:39):
podcast, there's so manyresources out there, for example
, this podcast, but there'sother podcasts.
I want to say that that's oneof the good things about now is
that we have so many likepodcasts, youtube books now, of
people from our own communitythat are teaching these things.
So you just got to go out thereand look and follow the people
(17:00):
that you, you know, you relateto, that you like or whatever,
and um, just start learning, um.
The second one is to surroundyourself with, um people that
think that way right.
So I am growing my network andthat is helping a lot too, and,
um, it's good, good to have,because, of course, that fear is
(17:22):
going to come up and it's niceto have somebody else that is
another investor that can helpguide you through your feelings
or bounce off.
You know, get some feedback oflike, hey, I'm thinking of
buying this property, what doyou think?
I did that with my most recentproperty.
I did have that fear come up alittle.
(17:42):
You know it still comes up.
It's not something that you canget over.
It's still going to be there.
You just learn how to manage itright Through.
You know talking to yourselfand you know seeking out, you
know advice and feedback fromyour network, which is what I
did, and so that's why you wantto have a group of people that
(18:03):
have kind of the same similargoals investors, things like
that of whatever you're tryingto do.
If you're trying to get intobusiness, you know, find a
network for that.
For me it's real estateinvesting.
So I have a big network of realestate investors and so when I
did have that feeling he waslike no numbers look good.
I mean, you did everything youdid, you did your due diligence,
(18:26):
everything like that Soundslike a good deal and it was
right.
But you're always going to havethat little fear because it's
been so ingrained in ourcommunity and ourselves that
it's always going to besomething that we're going to
have to deal with.
And it just comes with time,with knowledge, with as you
(18:47):
build confidence.
So now that I've done severaldeals, like I feel more
confident and I can rely on myexperience.
Right, like no, I already didsix deals and you know I learned
from them.
Blah, I already did six dealsand I learned from them blah,
blah, blah.
So I get more confident indoing that.
So again, when you're doingthis debt, don't just get out
(19:08):
there and go get a loan, forwhatever reason.
Know about the loan, do thenumbers, do the math.
Is this loan going to be worthit to acquire this asset and how
much money is it going to bringto me?
And then you decide based onthe numbers, how is it going to
be worth it for me to uh, getinto debt?
(19:30):
For me it was right.
And so, again, run the numbers.
And, you know, start small.
Like I, I did the same thing.
I started.
I started with one property.
I started small.
I I'm not out here getting like$300,000 properties or $500,000
(19:51):
properties like over here inCalifornia.
I live in California.
There's no way I would havestarted investing and go into
debt over here and buy my firstrental property.
I started off small.
I'm in another state that ismore accessible in the price
(20:12):
ranges of these properties,which means that I don't have to
go into debt as much.
So each property right now islike 70,000, 80,000 that I owe
on each property right now,except the most recent one, but
it's very low risk compared towhat other debts I would need to
(20:36):
be able to get an investmentproperty over here in California
.
So also, like you know, do whatyou can right, start small.
And then the last one is justjust do it.
I think I was in a podcast andsomebody just told me it's like
(20:57):
man, I like that, you just gofor it.
And it's like I was, like Inever realized that I do that.
It's just once I set my mind toit.
It's like, man, I like that,you just go for it.
And it's like I was, like Inever realized that I do that.
It's just once I set my mind toit.
I'm like you know what, I'mjust going to go for it, like I
I learned about it.
I have, you know, a networkthat I have that I could, you
know, ask things about, likeabout this property, and you
know, get their feedback on andyou know, get their feedback on.
(21:18):
I did the numbers, like I'm justgoing to go for it.
And that's, I think, one of thethings that we just got to do.
Like, do the thing that's scary, do it, you know, with a good
risk analysis, right, like,don't just go out there and just
do it.
You know, follow the othersteps that I said, like running
(21:39):
the numbers, starting small,educating yourself or or
whatever, but do the scary thing, go out there and do it, take
action.
It's gonna be scary.
It's gonna especially with that, it's gonna be super scary.
You're like seeing that and yousigning your paper and you see
how much you're going to owe.
It's going to be scary, butremember that it's going to
(22:03):
bring in money.
It's going to be worth it.
It's a proven strategy.
There's a historical evidenceand statistics of people
investing in real estate, usingdebt, making money and building
wealth and continue.
That's how all these richpeople have done it, and so our
community.
We just need to get out thereand start doing these things and
(22:26):
overcoming our fears of debtand risk.
Risk is another one, but I'lldo another episode on that one,
because that's a whole notherthing that we have to overcome
as well.
But hopefully this episode was,uh, helpful, don't forget,
there's resources.
Uh, and, down below, don'tforget about rental property
boot camp if you're interested,and, as always, you could always
(22:50):
email me, dm me if you have anyfeedback, questions or whatever
, but I'm here to always helpour community.
But in that, I will see you inthe next episode.
Bye.
you have to get into debt to build wealth.
Uh, sounds scary, right,because we are taught to avoid
debt, but we have to change ourmindsets and learn how to
leverage debt to build wealth.
Hola mi gente, welcome to themoney chisme podcast, where we
(00:22):
spill the real chisme onbuilding wealth without the
bullshit.
Whether you're trying to invest, grow that side hustle, finally
, get your money right or, myfavorite, buy rental properties,
you're in the right place.
I'm your host, violeta, afirst-gen Mexican immigrant,
real estate investor,entrepreneur and your financial
(00:45):
hype woman.
Get ready for tips, tricks andexpert advice straight from
nuestra comunidad, porque eldinero es power and we're here
to claim it.
Don't forget, you can alwaysfind helpful resources down in
the show notes and indescriptions, so make sure you
check that out.
And in descriptions, so makesure you check that out.
(01:08):
Hola, hola, welcome to anotherepisode of the money chisme
podcast.
Ahora we are going to betalking about debt and you know,
cuando you think about debt, itis a negative thing.
Right, we're taught to avoiddebt.
That debt is bad and sometimesit's.
You know, people put a moralvalue to debt, like it's immoral
(01:29):
to have debt, and in reality,we need to understand the
difference between a good debtversus bad debt.
And so, to get this episodestarted, I want to start off
with a mantra, and the mantra isdebt used wisely makes me rich.
(01:50):
Consumer debt makes me broke.
So let that sink in for alittle bit, and that's what
we're going to talk about today.
Of you know the differencebetween good and bad debt, how
to use debt to your advantage,and how I'm using debt to help
(02:12):
me gain financial freedom andbuild wealth.
But before that, we got tounderstand why we have so much
fear and hesitation when itcomes to debt.
And you know, for example, withme growing up, my dad and my
mom siempre was like you knowwhat?
(02:34):
You have to buy everything incash.
If you cannot, you know, pay itin cash, then you just can't
afford it because you don't wantto use credit cards, you don't
want to get yourself in debt,you don't want to get a loan,
you want to just, um, avoid debtat all costs.
And back then, that kind ofadvice, you know, kind of worked
(02:57):
, right, um, for someone that'sstarting out, especially when
you're not, um, very, uh,financial literate, right, it's,
it's good advice for at thatpoint in time, especially
because I're not very financialliterate.
Right, it's good advice, for atthat point in time, especially
because I was a teenager and Iwas, you know, I was young it's
good advice to like, hey, don'tgo out there and get a whole
bunch of consumer debt, whichthat is bad debt Things like
(03:20):
credit cards, even your car loanand things like that.
That is consumer debt.
That's debt that's not makingmoney or increasing in value or
anything like that.
So I get where you know myfamily was coming from at that
time and for many of us is thesame, the same thing.
(03:41):
We get that type of advice, butthere's never a distinction
between good and bad debt, andthat's where we kind of like get
into this problem when it doescome to using debt to buy things
like rental properties orbusinesses or anything like that
(04:03):
.
And so that's the kind ofmindset shift that I want for us
to have.
After listening Hopefully afteryou listen to this episode, you
start viewing debt in adifferent light, of something
that can be used as a tool tohelp you build wealth, because
(04:24):
the rich people use it all thetime.
For example, they used it as atool to use other people's money
, and you'll hear it like insocial media and stuff like that
, as opm is using other people'smoney to buy assets that are
(04:45):
going to make a return for you.
Right, it's going to bring youincome in some way, and they do
it all the time, and this is howthey can avoid taxes as well,
because it's a debt.
It's not income when they'reborrowing this money and you
could borrow against your ownassets.
(05:06):
So, for example, if I buy aproperty and then later take a
loan on it to buy anotherproperty, I'm starting to build
wealth using the bank's money,versus me selling that property
and getting that tax hit becauseI got.
(05:26):
I sold the property and gotincome.
No, instead I borrowed moneyagainst it that I can deduct the
interest rate from to lower mytax liability and all that stuff
and buy another asset that'sgoing to make me money, and so
that's.
That's one of the ways thatthey use debt to not only buy
(05:47):
assets, build wealth, but alsolower their tax liability, and
it's all legal.
You know you could.
It's just knowing the tax systemand and knowing how to use debt
to your advantage, versus youknow going and get credit cards
and you know maxing them out andall that stuff that's putting
(06:10):
you in debt, that's you'relosing money.
So that's the mindset that weneed to change in our community
of not being scared of debt ingeneral, like it's a healthy
fear, of course, but that shouldbe only for um, consumer debt,
(06:31):
like credit cards and thingslike that.
But we we need to not have thatfear when it comes to borrowing
money to buy, um, you know,assets.
And I find that throughout thisjourney that I've been trying
to teach uh, real estateinvesting to our community
that's one of the biggest issuesis that people are scared to
(06:55):
borrow money to buy a rentalproperty.
They want to buy a cash.
Uh, because that's the mindsetthat we have.
Again, even with my upbringingwas that, hey, save up for it,
buy everything in cash, don't goget a loan and everything like
that.
But it's because we don'tunderstand how a loan works, how
(07:17):
that debt works, what we candeduct like that works, what we
can deduct like that.
You think about the interest,for example, right now, with,
you know, 7% or whatever it isat um nowadays.
I haven't checked, but I boughta property at 6.99.
I think it was, and you knowpeople are like, oh, my God,
(07:40):
that's high interest or whatever.
But and you're getting a loanand you're going to pay this
much by the end of the the uh,the loan term.
By the time you pay it off, youactually paid a lot more or
whatever.
Yeah, but at the same time thehouse is appreciating, um, the
rental income is paying thatmortgage, the interest rate, it.
(08:02):
I can deduct that from myrental income, so I lower my tax
liability, so I pay less taxes.
And so, like we don't know thatpart of it, we just see debt
and interest rate and thatscares a lot of people off from
using debt to buy rentalproperties.
Which quick little plug.
I do go into this in depth inmy rental property bootcamp.
(08:26):
It gives you all the tools andresources and helps you gain the
knowledge so that way you couldgo out there and buy your first
rental property or second orthird with confidence.
So that is linked down below.
It's a self-paced course, so goat your own pace.
And, yeah, get out there andstart investing in real estate.
(08:48):
And so at the beginning I saidthe mantra debt used wisely
makes me rich.
Consumer debt makes me broke.
And, just like I was saying, islearning to use debt to our
advantage.
And I use debt with real estateinvesting.
So I am technically and it'sgonna scare some people 374,000
(09:18):
in debt.
Now that sounds like a lot ofmoney, right, like can you
imagine being that much in debt?
And it it can sound scary.
And when people uh startthinking about buying properties
and using mortgages and loansand stuff like that, it sounds
(09:38):
very scary.
But let me tell you how muchthat those properties in total
are worth is $585,000.
So even though I'm $374,000, Ithink is what I said $1,000 in
debt, those assets are worth$585,000.
(10:00):
And not only that per year it'sgoing to make me $70,000 a year
in rental income.
Now, of course, you know youdeduct expenses and all that
stuff, but that's still moneycoming in because I don't have
to pay it out of my pocket tomaintain this property, to do
repairs, to pay for the taxes.
(10:22):
All that is through the rentalincome that comes in and the
loan is being paid off throughthe rental income I get to
deduct, like how I wasmentioning earlier, even though
I make, you know, bring in$70,000 in rental income, I'm
not paying taxes for that$70,000.
(10:44):
So if I had a W-2 job, aregular 905 job, and I had that
$70,000 a year salary versus therental income, $70,000 in
salary with my W-2, I would paytaxes on that full $70,000.
But with rental income I'm not,because I get to deduct all the
(11:07):
expenses.
The interest of the loan, likeI mentioned, um, the, I always
have a property manager, sothat's an expense, because
rental properties are seen as abusiness.
So every expense that I have to, you know, have to manage that
property, I get to deduct it asa business expense.
(11:29):
So, um, the interest, themaintenance, the, uh, the
property manager, things likethat, all of that I can deduct,
even though I received thatmoney for those things I get to
depreciate the property everyyear.
So again, I talk about that.
(11:49):
Actually, I'll link the episodedown below where I talk about
the tax benefits of real estateinvesting.
I did make an episode on that,so I'll link it below so you
could go in depth of all the taxbenefits with real estate
investing.
But all of that you know, usingdebt I was able to acquire an
asset that is going toappreciate, increase, it's going
(12:13):
to get paid off because withthe income that it's bringing in
, that's income that I could usefor myself as well.
After all the expenses andthings like that also I get some
tax benefits.
I don't have to pay, pay taxeson the whole thing, um, and so
with that, that's more moneythat you get to keep in your
(12:35):
pocket, and so that's how youstart building wealth.
And, um, how to use debt tobuild wealth, to get these
assets so that way you can makeincome, build multiple sources
of income and gain thatfinancial freedom and build
wealth.
And it's the same thing whenyou are building a business.
(12:57):
We have the same fear.
When it comes to runningbusinesses, a lot of us like we
want to just like, um, not goget a loan for our business or
anything like that, because wejust rely on the income that
we're making.
And, uh, that really limits youbecause of the fear of getting
(13:18):
into debt.
But, again, all those benefitsof being able to deduct, like
the interest and all that stuffexpenses, that works for
businesses as well.
Going out there and getting aloan to grow your business is
going to, you know, help bringin more income and you're going
(13:45):
to be able to, like I said, growfaster and more efficiently and
you're able to like outsourcethings so that way you can
better work on your businessversus in your business.
And so, even with businesses.
I see a lot of people don't wantto go get a loan and because,
again, the fear and the negativeview that we have when it comes
(14:07):
to debt but it can hold youback when it's it comes to your
business um, it could take youway longer or you miss out on
opportunities because you're notthere yet, because you're
limited by just the flow thatyou come in and it's used by the
(14:27):
rich all the time.
They go out there and getinvestors or they go out there
and get loans to build theirbusiness so that way they can
grow and make more money.
And so that's what I want ourcommunity to start shifting
their, their mindset andovercoming this fear of debt.
(14:48):
It's a healthy fear, of course,but at this point it it got so
ingrained in us that itespecially because there was, we
didn't draw a line betweenconsumer debt and just what uh,
debt that you used to buy assets, that now any debt is scary and
(15:09):
it's really holding back ourcommunity because we want to
save up for that first property,we want to save up to start
that business, things like that,and instead of going out there
and getting debt, so we continueto behind and and in trail
behind because of that type,that fear of debt, and we need
(15:29):
to get over that if we want toget out here and start, you know
, building wealth and makingchange.
And with that, um, because mydaughter, so I have to go get
her.
I just want to leave you withsome tips on you know, how to
help you overcome and you know,so that way you could get out
there and, you know, start usingdebt to your advantage.
(15:52):
Um, because I was able to do somuch and are I am growing
faster, because if I had to waittill, like you know, be able to
like, get, um, save up for aproperty, like I would still be
with my first property, and nowI'm on property number three,
technically number six, but Isold the first three ones.
(16:15):
Uh, so you know, the first thingis just really just educate
yourself, learn about how debtis used, the difference between
good debt and bad debt, how youcan use debt to buy assets, and,
like there's so many resourcesout there, for example, this
(16:39):
podcast, there's so manyresources out there, for example
, this podcast, but there'sother podcasts.
I want to say that that's oneof the good things about now is
that we have so many likepodcasts, youtube books now, of
people from our own communitythat are teaching these things.
So you just got to go out thereand look and follow the people
(17:00):
that you, you know, you relateto, that you like or whatever,
and um, just start learning, um.
The second one is to surroundyourself with, um people that
think that way right.
So I am growing my network andthat is helping a lot too, and,
um, it's good, good to have,because, of course, that fear is
(17:22):
going to come up and it's niceto have somebody else that is
another investor that can helpguide you through your feelings
or bounce off.
You know, get some feedback oflike, hey, I'm thinking of
buying this property, what doyou think?
I did that with my most recentproperty.
I did have that fear come up alittle.
(17:42):
You know it still comes up.
It's not something that you canget over.
It's still going to be there.
You just learn how to manage itright Through.
You know talking to yourselfand you know seeking out, you
know advice and feedback fromyour network, which is what I
did, and so that's why you wantto have a group of people that
(18:03):
have kind of the same similargoals investors, things like
that of whatever you're tryingto do.
If you're trying to get intobusiness, you know, find a
network for that.
For me it's real estateinvesting.
So I have a big network of realestate investors and so when I
did have that feeling he waslike no numbers look good.
I mean, you did everything youdid, you did your due diligence,
(18:26):
everything like that Soundslike a good deal and it was
right.
But you're always going to havethat little fear because it's
been so ingrained in ourcommunity and ourselves that
it's always going to besomething that we're going to
have to deal with.
And it just comes with time,with knowledge, with as you
(18:47):
build confidence.
So now that I've done severaldeals, like I feel more
confident and I can rely on myexperience.
Right, like no, I already didsix deals and you know I learned
from them.
Blah, I already did six dealsand I learned from them blah,
blah, blah.
So I get more confident indoing that.
So again, when you're doingthis debt, don't just get out
(19:08):
there and go get a loan, forwhatever reason.
Know about the loan, do thenumbers, do the math.
Is this loan going to be worthit to acquire this asset and how
much money is it going to bringto me?
And then you decide based onthe numbers, how is it going to
be worth it for me to uh, getinto debt?
(19:30):
For me it was right.
And so, again, run the numbers.
And, you know, start small.
Like I, I did the same thing.
I started.
I started with one property.
I started small.
I I'm not out here getting like$300,000 properties or $500,000
(19:51):
properties like over here inCalifornia.
I live in California.
There's no way I would havestarted investing and go into
debt over here and buy my firstrental property.
I started off small.
I'm in another state that ismore accessible in the price
(20:12):
ranges of these properties,which means that I don't have to
go into debt as much.
So each property right now islike 70,000, 80,000 that I owe
on each property right now,except the most recent one, but
it's very low risk compared towhat other debts I would need to
(20:36):
be able to get an investmentproperty over here in California
.
So also, like you know, do whatyou can right, start small.
And then the last one is justjust do it.
I think I was in a podcast andsomebody just told me it's like
(20:57):
man, I like that, you just gofor it.
And it's like I was, like Inever realized that I do that.
It's just once I set my mind toit.
It's like, man, I like that,you just go for it.
And it's like I was, like Inever realized that I do that.
It's just once I set my mind toit.
I'm like you know what, I'mjust going to go for it, like I
I learned about it.
I have, you know, a networkthat I have that I could, you
know, ask things about, likeabout this property, and you
know, get their feedback on andyou know, get their feedback on.
(21:18):
I did the numbers, like I'm justgoing to go for it.
And that's, I think, one of thethings that we just got to do.
Like, do the thing that's scary, do it, you know, with a good
risk analysis, right, like,don't just go out there and just
do it.
You know, follow the othersteps that I said, like running
(21:39):
the numbers, starting small,educating yourself or or
whatever, but do the scary thing, go out there and do it, take
action.
It's gonna be scary.
It's gonna especially with that, it's gonna be super scary.
You're like seeing that and yousigning your paper and you see
how much you're going to owe.
It's going to be scary, butremember that it's going to
(22:03):
bring in money.
It's going to be worth it.
It's a proven strategy.
There's a historical evidenceand statistics of people
investing in real estate, usingdebt, making money and building
wealth and continue.
That's how all these richpeople have done it, and so our
community.
We just need to get out thereand start doing these things and
(22:26):
overcoming our fears of debtand risk.
Risk is another one, but I'lldo another episode on that one,
because that's a whole notherthing that we have to overcome
as well.
But hopefully this episode was,uh, helpful, don't forget,
there's resources.
Uh, and, down below, don'tforget about rental property
boot camp if you're interested,and, as always, you could always
(22:50):
email me, dm me if you have anyfeedback, questions or whatever
, but I'm here to always helpour community.
But in that, I will see you inthe next episode.
Bye.
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