4 minute read
Ever had that friend who can’t stop talking about their Bitcoin returns while you’re still fumbling around with rent? Yep, me too.
And yeah, maybe you dabbled a bit in Dogecoin after that fourth glass of wine, but here’s another truth:
Real estate can be just as sexy as the crypto game.
You don’t need to be a Wall Street big-shot to understand real estate. Not when you’ve got me. So, let’s unpack amortization— the secret to building equity.
“Amorti-WHAT-now?” — Breaking Down Big Words
Amortization. Sounds like something from a wizarding spellbook, right? It’s just a fancy term to explain how you’re gradually paying off your mortgage debt. Here’s how it works:
Imagine you have a tub of ice cream, your favorite flavor of Ben & Jerry’s. Think of your mortgage as this tub of ice cream. At first, most of your spoonfuls scrape off the hard, frosty top layer (that’s the interest). But keep digging, and soon you’re enjoying nice, full spoonfuls of the core flavors (principal paydown). And, if you’re like me, you keep nibbling away until you’re scraping the bottom of the tub. Who really doesn’t finish the whole thing?
At least your mortgage is paid, right?
Why the Hell Should I Care?
I hear you. You’re thinking, “I’ve got stocks soaring and crypto coins multiplying. Why should I even glance at real estate?” Well, it’s all about diversification.
While we’re out here trying to figure out the next big crypto move, there’s a stable, tangible asset to consider — a house, a condo, or even a swanky apartment complex through a real estate syndication.
“Buy land. They aren’t making it anymore.” -Mark Twain
You would not want to bet all your chips on a single roll of the dice. Real estate is the calm, cool older sibling to your fiery, unpredictable stocks.
Remember this: “Don’t put all your eggs in one basket. Especially if that basket is on a roller coaster.” — Some financially wise dude, probably.
When I talk real estate, I am not talking your single family home. Though, amortization applies to all real estate with a mortgage.
I am talking investment property. The kind you rent out to a tenant.
Why is this a cheat code?
With every payment a tenant makes, a chunk goes toward reducing the main loan (principal — that’s our old friend, amortization). So, while you’re chilling, your tenants are building your equity. Pretty sweet deal.
Remember that picture of the apartment complex above? I own a stake in that property through a syndication. And, every month 120 wonderful tenants pay down my principal which means more cash fore me when we sell.
Ask yourself, “Do I see myself working a 9–5 job until 65 to retire?”
I the hell don’t see myself living that life. You shouldn’t either.
An old once told me this, and damn, was he right.
“Building equity means you’re not just owning, you’re growing.”
It’s like leveling up, except the rewards are tangible, real and did I mention profitable?
Equity is like getting a VIP card to the financial freedom club. As your property’s value goes up and your mortgage goes down, your equity grows. It’s your ticket to leveraging bigger investments in the future.
Let’s get straight — like all good things, there’s a catch.
Like all investments, there are risks. Property values can go up and down. But remember, property isn’t as volatile as that meme stock you bought last summer.
Do your homework, consult professionals, and trust your gut.
Conclusion: Your Move, Player
Here’s the deal. Your day job might give you some sweet perks, but investing in real estate should be a no-brainer. Take a moment, reflect on where you want to be in 10, 20, or 30 years. Is real estate part of that vision to financial freedom?
So, next time you’re on a Zoom call pretending your video isn’t working, use that time to sift through real estate forums and research a bit on real estate, syndications and other tangible investments.
Real estate could be the investment move you didn’t know you needed. Start small, explore, and continue to learn. 🏠🚀
Stay curious, stay savvy, and remember: it’s never too late to get in the game.
Disclaimer: Investments can be quirky beasts. They might love you today and ghost you tomorrow. Remember to always do your research or consult with a financial advisor before making big moves.