Real estate investing is in Jason\u2019s blood. His mom has been doing it a long time and recently retired with 13 properties owned free and clear (paid off). The properties are worth about $7 million and the rental income adds up to about $220,000 annually. At this point she has several options but let\u2019s pretend like she has decided to take the equity out and invest it.
\nShe could toss it into \u201csafe\u201d CD\u2019s or mutual funds and, even if they returned 5% a year, she would earn $350,000. Not so fast! Got to pay taxes on that, which will be a mighty big chunk in that income bracket.
\nWhat else could she do? Hmm, what else COULD she do?
\nIf she were to ask her son, who\u2019s done pretty well for himself with a few innovative strategies, he might say, \u201cMom, haven\u2019t you been paying attention? Refi \u2018til ya die!\u201d What this means is get that equity out of those 13 properties, where it\u2019s wasting away with a chronic case of inflationitis, and use maximum prudent leverage to put it to work increasing her portfolio even more.
\n\u201cBut, I\u2019m retired,\u201d Mom might say, \u201cand that sounds suspiciously like work.\u201d
\nNonsense. She\u2019s still retired. Sign her name on a few forms, put property management in place, stay retired but keep building wealth with an automatic ATM running in the background we like to call real estate investing the right way. Come on, Mom. It\u2019s Jason\u2019s inheritance. Let\u2019s make it a big one.