Comments by "" (@mrpmj00) on "How I Borrow FREE Money" video.

  1. QUESTION: where is your $10k profit coming from because you have to pay the mortgage and maintenance? Not to mention a landlord needs to keep cash on hand in case there's no tenant (that's an opportunity cost that money could have been used to grow elsewhere). Most people are NOT realtors so they have to incur a commission when selling unlike you who gets to keep half that. When it's time to sell a house, it's going to cost you 10% in commissions and paperwork and more for a 1year insurance and fixing repairs found during an inspection and termite spray. 1. Assume the house did NOT appreciate: a. Selling a $100k house (bought with a loan) means a loss of -$13k ($3k interest - $10k comission/paperwork). Multiplied by 3 rentals: -$40k loss. b. Selling a $100k house (bought with cash) means a loss of -$9350 ($0 interest - $10k comission/paperwork). Multiplied by 3 rentals: -$28k loss. c. COMPARE TO the STOCK MARKET: $100K + 0% growth = $0 profit. 2. Assume the house appreciated 4% (average is 3-5%): https://www.zillow.com/research/zillow-home-value-appreciation-5235/ a. Selling a $100k house (bought with a loan) means a loss of -$9350 ($4k profit - $3350 interest - $10k comission/paperwork). Multiplied by 3 rentals: -$28k loss. b. Selling a $100k house (bought with cash) means a loss of -$6k ($4k profit - $0 interest - $10k comission/paperwork). Multiplied by 3 rentals: -$18k loss. c. COMPARE TO the STOCK MARKET (average 8% return): $100K + 8% growth = $8k profit.
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