Archimedes said give him leverage and he'd move the world. A speaker argues income property is the ultimate leverage tool, showing how a $109,000 Orlando home renting for $1,050 monthly can deliver 30-33% annual returns through financing, inflation, and cash flow. Tax advantages make it the fastest path from employee to cash-flowing business owner.
I want to talk to you about income property, the most historically proven asset class in the world. But before we do that, I want to get into this topic of, you know, I was kind of thinking, and I do a lot of interviews on other people's podcasts and talking on my own podcast about what is the sort of the one trick, the hack, the secret that really empowers people to success. And I think at the end of the day, it's leverage. It's leverage, getting leverage over whatever it is you want to do, because leverage helps you do more with less. Whatever you do, leverage magnifies your results. Now, about 2,300 years ago, the philosopher and mathematician and physicist Archimedes said, give me a lever long enough and I shall move the entire world. And this is the power of leverage. It's an incredibly powerful thing. And today I want to touch on two areas of leverage, but three total. One area that I want to spend the most time on, which, as Matt and Jason said, is my specialty, it's income property investing. So this is what I call the triad of leverage. And I think these are really the three most significant areas of life. And you know, someone might say, well, you know, what about relationships? That's a huge area of life. Well, that's part of biology. And so that topic goes deep. It goes into the quantified self movement. It goes into all of the amazing, incredible technologies that we have access to today. Income property, the most historically proven asset class in the entire world. World. I've been saying that for a long time and no one seems to argue with me on it. Nobody says, well, the stock market is better. My mutual fund outperformed your income property. Nobody says that to me. They always say they agree. Income property is the most historically proven asset class. And one of the reasons it is so powerful is that it offers leverage. Leverage in terms of doing less with more in terms of financing. Now, many of you understand that already, but there are many other multidimensional aspects of this leverage. And I want to share with you just a couple of them. Today, this is sort of a standard Performa. And I know you can't necessarily see all those numbers on there. It's a big page. But this is a humble little single family home and I believe it's in Orlando, Florida, or Orlando area in Florida. And I'm going there for a property tour that I'm hosting next week. And here's what's interesting about it. Because the income property is a multi dimensional asset class. You might look at this property on the face of it, and think, you know, Jason, this is no big deal. What's so great about this? You know, you can buy it for $109,000 and you can rent it for 1,050 per month. So what? It'll take about $32,000 with down payment and closing costs if you qualify for financing to acquire this property. And so what, you'll get a little return on your money. Big deal. But if you look in the section that's in bold there, and I can't really point to it here, unfortunately for you, but you'll see that the overall return on investment is projected at 30, 33, 33% annually on this property because it's a multi dimensional asset class. And you earn your return, your roi, your return on investment in so many forms. Leverage, inflation, cash flow appreciation, something we even call regression to replacement cost, where you buy these properties below the cost of actual construction. It's really an incredible asset class. It really is. And many of you have big problems here because of your success. And your problem is taxes. Taxes are the single largest expense in anybody's life, the single largest expense. And most people will spend all this time shopping around for a new car or trying to get a better deal on a, on a vacation or a TV set or something like that. And they've got this giant elephant in the room called the government. The taxes and income property is the most tax favored asset in America. And I know we have an international audience here, by the way. So in terms of looking at the progression of our financial lives, we all start out usually as an employee or maybe even a self employed person. And in that way, when we stop working, our income stops. The next level is we become a business owner and we create a system that hopefully produces cash flow for us. And in so doing, we want to leave this system and hopefully it works by itself.
