Think of it this way: I don't have a company

but owning many rental houses, I am creating the same kind of effect as operating a profit earning company. Who are my employees ? my tenants! I didn't hire them, I don't have to pay their salary and health insurance. But they contribute nearly 1/3 of their salary to pay for my rent. They are indirectly paying for reducing my principle amount on the house. They are my passive workers. The more rental houses I buy, the more OPM I can control, the better I can suck other's people's blood earned money into my own pockets (PASSIVELY).

A lot of people's understanding for housing investment remains at the level: "I buy a house and get price increase, and I am happy, otherwise, not good investment". These people didn't know the passive power from housing investing.

80% of people don't understand the OPM/Passive nature of investing in real estate. The rest 15% understand the theory, but they can't pass the landlord test, so in the end they won't reap the benefits. Only 5% people can win this game. That's why I say real estate investing is very hard business. At the same time, it's one of the best businesses for middle income people to find financial freedom in the end.

所有跟帖： 

• you use all their rents to pay bank mortgage too :) -pediatrician2- ♂ (316 bytes) () 06/27/2007 postreply 17:03:50

• No, the middle man concept is not appropriate: -miat42- ♂ (895 bytes) () 06/27/2007 postreply 17:12:37

• DDD: I am a fixed income bond issuer. -cultuslake- ♂ (0 bytes) () 06/27/2007 postreply 18:36:32

• 你说的有道理. Bank is always the winner. -山高月小- ♂ (372 bytes) () 06/27/2007 postreply 19:21:10

• DDD,M兄的理论功底超强啊 -表情符号- ♀ (0 bytes) () 06/27/2007 postreply 17:05:07

• DDD:) -jy101- ♂ (0 bytes) () 06/27/2007 postreply 18:12:27

• You employees actually also include: -cultuslake- ♂ (116 bytes) () 06/27/2007 postreply 18:38:34

• this's what i'm about to say. V/C loss,Op Ex... -soldanella- ♀ (0 bytes) () 06/27/2007 postreply 18:56:51

• Tenants are my perm employee. Agents are my contractors -miat42- ♂ (0 bytes) () 06/27/2007 postreply 21:43:07