The Real Estate AF Blog - Reigning Champ For 10,000 Years

The Real Estate AF Blog

Reigning champ for 10,000+ years. The #1 lowest risk investment, with the highest return

Before I reveal the investment you can make with no initial capital that can earn you 5% to 10% on someone else’s hundreds of thousands, while you utilize money you’re already spending... Let’s talk about savings and investments for just a second and let’s go ahead and bring some real perspective and cut out all the bullshit. Yes? Ok… Read this perspective, even if you know where I’m going with this. C’mon, just for 5 minutes, grow an attention span.

When we asked folks what is supposedly the safest place to park your money they answered “A savings account at the bank.” Oh, those crafty bankers, where they give you half a percent on your savings balance and loan it out to some other schmuck for 27.9% apr and the only fees they don’t like are the ones they’ve not thought up yet in order to like them… ok, I went off into the weeds on that. I apologize.

When we asked folks where they could put their money to make it grow faster, disregarding the risk, a few smart asses said “The Casino” but most said “The Stock Market”. The truth is, without the proper education, the stock market can be even riskier than the casino, but I digress. 

When we asked folks where you can find some balance of safety and still grow your money they said “Mutual Funds”. If you don’t know what a mutual fund is, {that’s not your fault, you probably went to public school. I kid, I kid. It’s a joke not a di… just… Don’t take it so hard.} It’s basically money pooled into a fund from thousands of folks and managed by a professional investment portfolio manager. The money is invested in varying risk levels and diversified into different markets to minimize losses and maximize gains. Generally, this is considered a relatively safe investment that could have varying averages from 5% to 10% from year to year.

In case you skipped ahead or your attention span didn’t allow you to pay attention… 

The savings account will earn you less than half a percent while inflation (negative “buying power” of your money) averages between 5 and 6 percent over the last couple years. You’re losing money if you put it in the bank. Period. It’s bullshit!

The stock market can earn you big returns or render you penniless in a single day. Seriously, even the pros lose big time now and then and they “know what they’re doing” while they tirelessly watch the ticker and read headlines that might sway buyer confidence one way or another… They Guess! It’s bullshit!

The mutual fund can lower your risk through diversity and earn you 5% to 10% on your money over the course of time. As a young person, even putting $100 a month out of your paycheck away consistently until retirement can really render you a nice amount of cash at retirement. (I’m not one, but talk to your financial advisor.) It’s NOT bullshit, but you’re earning interest on the low dollar amount that you can save per year. Examples: 5% of $1,200 is $60… 10% of $1,200 is $120.

Now that you know what is bullshit and what isn’t, I suppose you’ve earned the right to know what is “The Reigning Champ for 10,000+ years. The #1 lowest risk investment, with the highest return” as the title suggests.

It is Real Estate, duh! The one thing they aren’t making any more of is land, but that’s not the real argument for why Real Estate is the reigning champ. Allow me to present the evidence below, so you can get on with whatever mind numbing waste of time you were engaged in before you allowed yourself a shred of interest in something that WILL CHANGE YOUR FUTURE. 

Facts: 

-The housing market is always going up. In the last 100 years it’s had 3 times where it dipped down significantly, but it still went right back up. You can’t argue with that. Find someone who bought any piece of real estate 30 years ago or 10 years ago or even 5 years ago… it’s worth a shit ton more than they paid for it. That makes it the lowest risk.

-You can buy real estate with $0 down... Ziltch, Nadda. That means your risk is Zero!

-You’re already paying for housing. It’s a cost that everyone has and cannot escape. {unless you’re escaping to your parent’s basement, loser} You’ll use that money to pay the interest on the mortgage and more. 

-A portion of your mortgage payment will go towards paying down the principal amount you owe on the house and act like a “savings account”... Not the bullshit one at the bank where you lose money to inflation. This one earns you big dividends. You’re putting part of your housing cost back into your own pocket.

-Here’s the big one… You can earn 5% to 10% on the money you borrowed right out of the gate. Let me make this clearer with math. Appreciation can yield the same percentage gains as a mutual fund might bring, but it’s much bigger capital earning the interest (aka, appreciation). 5% of $400,000 is $20,000 and 10% of $400,000 is $40,000… in 5 years at 5% appreciation the house will have made you about $110,000 richer or in 5 years at 10% appreciation the house will have made you **… Stop! Don’t be greedy. Though the last several years have seen double digit appreciation, the interest rate hike halted that and even caused a small setback, but a balanced market should yield you around 5%... on someone else’s money. 

Your investment and savings options:

Savings account - Get a shit interest earning rate and lose 1% to 3% annually due to inflation… or 5% to 6% at the rate that is current as of this writing.

Stock Market - For 99% of folks... Lose everything because you’re not educated and too lazy to be obsessive about reading, watching and ultimately guessing. 

Mutual Fund - Small gains compound into bigger gains if you start young and are consistent. 5% to 10% on the small amount of money you’re able to save.

And the Reigning champ for 10,000+ years...

Real Estate - Big gains compound into huge gains and can be utilized to trade up to the dream house or equity repurposed into investment properties where the schmucks who didn’t read this will rent from you, pay your mortgage for you, and help you build your rental empire!!! 

Don’t be a moron. Buy as much real estate as you can, as soon as you can and as often as you can. I’ll show you how to get started, possibly with NO MONEY DOWN!

** $244,000… but, that’s not a historical average, though it has been the rough average over the last few years in Western Washington.

Written by: Jeryd Smith, Founder of WA Home Hunt and a real estate broker, licensed in Washington State. Is he an idiot or a genius? Who knows, but he is opinionated and that's just what this writing is… his opinion. Nothing more, nothing less.