Richard Canfield explains how rent deposits work as bank ledger entries that make landlords unsecured creditors, unlike W2 employees who receive paychecks. The key difference: a rent check is a receipt showing the bank owes you money, not guaranteed income.
Chapters
What would be a multitude of streams of income, real estate, cash flows. I say cash flows. I don't mean the cash flow left over. I mean an entire rental multifamily building. You have a single family unit, you receive rent. That entire rent check is deposited. You get a ledger entry that indicates the money is in an account that you own. But really, what that is a ledger entry that says you've deposited $2,000 of rent income into this account. That's got your name on it. That's an indication, a tracking mechanism, for that banking institution to say they owe you that money. So it's really a receipt. And you're an unsecured creditor of the bank. You instantly unsecured in relation to that rent. And then you get paid for your income, Whether you're a W2 or T4 employee in Canada, you work for a business, you get a paycheck.