To be taken with a grain of salt:
Your cash reserves are limiting you.
Person A makes $1,000,000 per year and keeps $750k in cash.
Person B makes $1,000,000 per year, spends $250k and dumps $750k in asset base.
Apply leverage @ 75% LTV = $3M assets.
Your cash reserves are limiting you.
Person A makes $1,000,000 per year and keeps $750k in cash.
Person B makes $1,000,000 per year, spends $250k and dumps $750k in asset base.
Apply leverage @ 75% LTV = $3M assets.
Over first 12 months here’s what happens:
- $3M turns into $3.2M conservative.
- Debt structured correctly reduces $2.25M to $2.1M
- $200k bump on assets has no debt, pure net worth
- Cash flow created @ 8% on $750k = $60k bump
- $3M turns into $3.2M conservative.
- Debt structured correctly reduces $2.25M to $2.1M
- $200k bump on assets has no debt, pure net worth
- Cash flow created @ 8% on $750k = $60k bump
All in first 12 months = $385k+ and $750k protected against assets.
Off $750k that’s 51% growth rate.
Compound over 5 yrs and you will hate yourself for hoarding cash while players strategically DEPLOY cash.
Off $750k that’s 51% growth rate.
Compound over 5 yrs and you will hate yourself for hoarding cash while players strategically DEPLOY cash.
This is a difficult thing to grasp because it feels safe to hang onto everything but it is counterproductive.
I keep 10% - 15% of my annual earnings in cash and deploy the rest strategically.
I keep 10% - 15% of my annual earnings in cash and deploy the rest strategically.
MORAL OF THE STORY:
Cash is a tool to be USED not hoarded.
Growth mindset 👑
Cash is a tool to be USED not hoarded.
Growth mindset 👑
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