What is Cashflowing Assets? – Jerry Fetta
In 11th grade I was taught what an asset was. In a college composition class I remember being taught about Rich Dad, Poor Dad by Robert Kiyosaki. The teacher showed examples of assets and liabilities. At the age of 17 this was the very first time I had learned the difference. Ever since, then I had a strong interest in assets and how to acquire them. Today I want to talk about what an asset is, what an asset isn’t, how the types of assets an individual can acquire. If you’d like to begin acquiring assets, we can schedule a complimentary coaching call to help you get started.
An asset is something of value that pays an income. That is my definition of an asset. It must have intrinsic value, usually known as “equity”, and it must also pay regular income. Preferably the income is paid monthly, but in some cases it can be quarterly as well. It is important to know that if there is not both intrinsic value and also recurring income, it is not an asset.
My favorite type of asset is small business. Why? Because generally a small business has the greatest amount control over how much money comes in and how fast. This is good and bad. If a person is very good at controlling a small business, it is the most profitable asset out there. If a person is not good at controlling a small business, it is not a profitable asset for that person. Small businesses typically require the highest amount of skill and attention.
Income real estate is an asset that I believe everyone should invest in. Income real estate is as simple as an individual owning a property and renting that property to a tenant for monthly income. This can be done on large scale and small scale, but to make it a successful investment, large scale works best. Keep in mind, the more people and systems involved, the more “passive” it will be. The lower degree of people and systems, the more owning real estate is like a job.
Owner finance housing is one step below real estate in my opinion. Owner financing is very similar to income real estate, except for a few key differences. With an owner finance property, an individual is not renting the property out to a tenant. Instead, the owner is playing the role of the bank by financing a buyer out of pocket on a private mortgage note. This is an extremely passive investment! The trade off though is mortgage notes typically do not appreciate and typically do not have the same tax benefits as equity positions in real estate do.
The beauty of all 3 of these investments is that they are not speculative in comparison to 401k and Wall Street plans. You aren’t buying an invisible object backed by a piece of paper and digits on a screening, while hoping it goes up in value before you retire and that it doesn’t deplete before you die. Assets are how wealth is built!
I have a program called Wealth Dynamic University that helps you put together a real plan to begin building with by acquiring income producing assets. You will have a plan, a coach, daily education, and a community of like-minded investors to grow with. Click here if you’d like to gain certainty in your future financial freedom.
Own Your Potential,
Jerry Fetta believes everyone has the God-given right to own their potential. Most of us don’t because we spend 40 hours per week serving the 40 year to life sentence, trading our precious time for worthless paper called money.
We live on an economic planet and time and money do need to be exchanged. But it doesn’t need to be your time or your money. Jerry teaches his clients to secure income producing assets that make the time and money exchange for you so you can buy your freedom back and live a life of abundance and prosperity. To get there we must know how to make money, how to keep it, and how to multiply it.
Jerry provides coaching, education, accountability, and community to help you build wealth. Join the Wealth DynamX coaching program, get educated on Wealth DynamX University, and begin networking with the Wealth DynamX Mastermind Group today.
To get started, go to www.WealthDynamX.com/potential