Richmond Dinh says don't buy a house with a mortgage unless you're making $1,000,000 a year. Instead, take that down payment and invest it in your business to scale faster. You'll make way more money and buy multiple properties later.
Chapters
Getting a mortgage is a big mistake if you're not making at least a million dollars a year in your business. And here's the reason why. If you're making 3, 4, $500,000 in your business and you're saving $100,000 of that, and that's good, that's great, you got some savings and you might be thinking, oh my gosh, it's time for me to buy property, get a mortgage, get an investment. Here's why that $100,000 is going to be the worst investment for you at the current stage of your business. Because if you put that $100,000 and buy a half a million dollar home in 10 years time, that half a million dollar home could be worth a million dollars and you would have made $5,000 in equity, which sounds good over a 10 year period for not doing much work. But if you invest that same a hundred thousand dollars into yourself, into more coaching, into more branding, into more mentoring, and you increase your capacity to earn and you suddenly make a million dollars a year, now guess what? A million dollars a year over 10 years, that's $10 million. Now after tax, expenses, all that kind of stuff, you would have made an additional $5 million net. And then now you can buy that million dollar property that used to be 500,000, but you can buy five of them. And so you're always going investing yourself up until the point where you're making a million dollars a year and not a mortgage.
