I'm excited to share this page with you titled, "PID's Mortgages"
First, I love the picture to the left because I think it can be interpreted two ways:
1) Your mortgage is literally about to crush you, like an ant.
Or, 2) You are using mortgage debt to make a TON of money and are now Superman proudly showing it off by lifting an entire house, made out of money, over your head.
On this page I will show you why I believe having rental properties helps you achieve the second interpretation. Specifically, I will highlight the major benefits of buy-and-hold rental property real estate, the current market value of Passive Income Dude's rental properties, as well as the current mortgage values against them, and why I am so thankful to have this option as a wealth creator.
To start, one of the biggest benefits of real estate is being able to lock in fixed rate debt for a very long period of time. Primarily because of the following four key reasons:
1) Inflation slowly erodes your mortgage debt for you. Without you doing anything. This is the hidden wealth creator of real estate - borrowing whole, real dollars TODAY that become very cheap to repay 20 or 30 years from now. Do not miss this powerful wealth creator.
2) You can highly lever your initial investment, resulting in massive gains over time.
3) Mortgage debt, or as I like to call it, cheap capital for you, is very, very inexpensive to obtain and to lock for decades.
4) Finally, once you 'outsource' your mortgage payment to your tenants, you receive the three benefits listed above and literally have a gold mine investment on your hands that gets stronger and stronger each month.
Let me give you an example of its "strength" increasing, passively each month: my 'mortgage debt paydown' total, just to show one of the benefits of real estate, has now increased more than $40 per month since the start of this year, 2016. Without doing anything. To be clear - what I am saying is that every month, literally forever, my mortgage debt paydown will be $40 more than it was at the start of this year, without me doing anything, and it will only get bigger and better, each month. Forever. Without doing anything.
All of that said, listed below is the current status of my mortgages, home values, etc., in detail:
Note that the ' monthly mortgage debt' and 'debt reduced' columns listed above are PER MONTH. EVERY MONTH my mortgage debt is lowered by over $1460, with zero dollars paid for by me; and all of it by my tenants. What a benefit!
I'll continue to update this page, once a month, so be sure to check back and watch it grow.
That said, here is my aggregate "Mortgage Debt Paydown" progress since Passive Income Dude was launched:
In closing, and I don't think I can't say it enough: Lock in as much debt, for as long of a term structure as you can, outsource this debt to a tenant, and then watch your wealth (and cash flow) grow massively, with very little work on your part.
If you haven't read my article on leverage, please do that here for a real-world example from one of my properties.
So, which perspective do you want to take?
What do you think? I'm always looking for others' perspectives and new ideas. Feel free to comment below. Thanks!
Passive Income Dude