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Day 8 of The 14-day Passive Income Challenge - 1 Asset vs 2 assets - Chaim Ekstein
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Day 8 of the 14-day Passive Income Challenge. In this video, I speak about concept 8 in the ALM Passive Income model (Attract, Leverage, Manage) 1 Asset vs 2 assets. We will discuss how owning two assets versus only one asset can achieve your goals much quicker. Please comment below on 1 thing you are going to do to apply what we discussed about mortgages. Feel free to share with your friends and family. Thanks for including me in your Passive Income journey.
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Transcript
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[Music]
welcome to number eight of the 14 day
passive income challenge my name is
jaime xteen and i'm super excited to be
with you today where we discuss one
asset
versus two assets let's jump right in
one acid versus two assets the truth of
the matter is we discussed a little bit
about the leverage part how it makes
sense in certain situations to take out
more more leverage than take out less
leverage today we're going to discuss
how does it help you in owning more than
one asset let's take an example a home
you own a home let's say it's worth a
hundred thousand dollars
and let's say let's assume that the home
grows in value of five percent a year
that means at the end of year number one
you have a home worth a hundred and five
thousand dollars regardless if you have
a mortgage on it or if you don't have a
mortgage on it the home is worth 105 000
when let's say that you take a mortgage
of it on the home and you take a hundred
thousand dollar mortgage and you what
you do with the money is you buy another
home
and that home also grows with five
percent in value which means it's also
worth 105 000 at the end of the year
minus the hundred thousand dollar
mortgage you took so that means another
five thousand dollars in
positive net worth increase in your
bottom line okay five thousand dollars
here and five thousand dollars here this
person would have had only this one this
person has this one as well because he
has two assets even though the money
came from this hundred thousand dollars
that they took a loan it doesn't really
matter the home still grew on value
and so did the the new home
this home grew and this home grew both
of them both of them grew in value and
as we discussed earlier as long as
the new home or the new investment that
you're doing grows more than what you're
paying for the financial institution
that finances the leverage you should
come out ahead ahead of the game because
you have that one this one is covered by
the new by the new investment you did
and in the same time this one also grew
in value so now you have two assets
versus one asset and if you can multiply
that by three four five and so on and so
forth it becomes
a very very effective way of
velocity of money that you can
implement in your passive income life
foundation plan
thank you for being with me
and i'm looking forward to seeing you in
the other days