A short YouTube discussion (hosts Liz Lamond and Jing Gin Fun) about funding real estate investments more efficiently. They emphasize that beyond finding deals, investors must plan funding, preserve compounding growth of capital, maintain accessible contingency funds, and consider combining real estate with the infinite banking concept to have money working for multiple purposes simultaneously.
Because where we store our money really changes what our the results that we get from all the other activities that we do in investing. So that's a really important point in this concept is understanding that we want to store our money somewhere where it can continue to grow. And we're not interrupting the compounding of that money.
What should every real estate investor know about when they're considering starting their real estate investing journey? I'm here with Jing Gin Fun. I'm Liz Lamond and we're going to talk about that topic today. Because when you invest in real estate, there are two things that need to happen. One is you need to find the deal and then you need to fund the deal. Now, the portion that we're going to focus on today is better ways to fund a deal such that your money is working much, much harder for you. Jingjin.
Yeah. Today we wanted to mention about how real estate investors very important thing when you invest in real estate is to how do you fund the deal? We all know that as real estate investors, important to find a great deal, you spend a lot of time, you work with a team and find do a lot of numbers, make sure a deal is working for you. But the next thing a lot of real estate investor has to notice is that we have to spend a lot of time to fund the deal or get a mortgage or find a joint venture partner. There's lots of things that you need to consider. There's a lot of time maybe involved in order to do that.
There are things that need to be done. So there's money for the down payment, there is perhaps a mortgage needed to finance the deal. And then there's also additional expenses like having mortgage insurance, property taxes, having a contingency fund in place. So there's a lot of money that's involved in this deal. Now, while it's a really great way to grow wealth and real estate investing is something that Jingen and I are big fans of, is that understanding that when we do it the traditional way that we've been taught, which is putting that deposit into that piece of real estate, that money is now stuck there. And until you can either refinance the property or you can sell the property, so that money is now only doing one task at a time. Now Jingen and I teach a process that still enables us to do the real estate investing or whatever other kind of investing you prefer to do and also have your money working multiple times. So that certainly changed the results for both of us. And in terms of our money is now doing at Least two things at the same time just changes the results that you get. As well as the contingency fund that used to sit dormant can now be in a place that is growing every single day. And you have access to that capital should you still need to fix something in the property or something comes up that you're not expecting, but you're not wasting time on the growth of that money.
And we all know that emergency fund or contingency funds are quite important. Every real estate investor should know and expect that. And also there's other causes that may relate with it. If you want to do some renovation or upgrade, always have some spare fund in place. That's important. We know that it's important to use leverage for real estate, but it's important that the part that you put in for that leverage is working for you. So your money can do more than one things at a time. And it's the part of the equity that is stuck in the property can be liquidated as well. So that's a very good thing that you could combine with real estate and infinite banking concept.
So we're talking about the infinite banking concept. You can click on one of our videos that's appearing above about understanding the infinite banking concept such that you can learn more about how the concept works. And important to know it is an and asset. So it's not something you have to choose whether or not you do this or you invest in real estate or this or you invest in some other kind of asset class that you this is a combined approach. It's something that you do in addition such that you make your results way more efficient. Because where we store our money really changes what our the results that we get from all the other activities that we do in investing. So that's a really important point in this concept is understanding that we want to store our money somewhere where it can continue to grow and we're not interrupting the compounding of that money while we're still having the opportunity to have access to liquidity and go and make the most of other opportunities. Now, this is not something that we're going to achieve instantly. It's something you're going to build. So maybe as a real estate investor, you might start using this concept for some of the smaller portions of your real estate investing. And then as that equity grows in your system, then you're going to be able to use it for many more things going forward, including maybe eventually one day using it for the full mortgage of properties going forward. If that's something that you're looking to do. So it's a system that you build up over time and get to make choices along the way how you deploy that capital and you get to set the terms of the repayment, which is particularly key for people who are looking at flipping properties and really want to be able to set their own timelines.
What else do you think as a real estate investor must have known for their real estate investing?
Asset protection is a really big piece. There is something called the deemed Disposition rule. If you don't know about that, please go look it up. We'll ask you, your tax professional, about what that means and what that might mean for your assets. It's really important to understand what that number is for you and for your real estate portfolio and then to find out how you can protect that. So we coach people on this process. We teach them how to create a system that's going to be something that they can use while they're investing, but also provides that level of asset protection. So if you have comments or questions, please leave them below. We love to interact with you and click on the videos that you see appearing beside where you can learn more about this concept.
