Acre Toronto

[RELover]

Who was at Acre today?

I learnt a lot in just those three hours! Many simple things yet strategic!

For those who have been to ACRE, will they go through the debt-reduction strategy at some point in the weekend?

We keep building wealth and using equity to accumulate more properties but when we have reached our goal, we should be reducing debt. But I don't think they went through that.

 

[Thomas Beyer]

Debt reduction has to be seen in light of assets owned and associated cash-flow. Ratios matter far more than absolute debt levels. So while $500,0000 debt on a $600,000 house might be far too much, $10M debt on a $20M portfolio of assets is usually not !

Debt is just a tool, like a hammer or dental floss. Use it appropriately. Debt has to be serviced so ensure there is either enough cash flow or enough cash at hand to do that. Debt never has to be paid off as long as cash flow or cash at hand ( from asset sales, reserves or re-finances) is sufficient.

Debt at 2.5-4% is ok as long as the asset produces 5-15% !!

Some related articles especially first one on "how to get started" and "what is better: cash flow or high ROI" http://myreinspace.com/threads/educational-rein-posts-by-thomas-beyer.10663/

You joined a good group. Enjoy the ride. Your heirs will thank you when they inherit the $20M portfolio !!

 

[Marnie]

I learnt a lot in just those three hours! Many simple things yet strategic!

Great to those three hours were so informative for you!

Debt is just a tool, like a hammer or dental floss. Use it appropriately.

Thank you very much for these insights Thomas

 

[RELover]

Thank you Thomas!

 

[adriano]

I think once you reach your real estate investing goal you will be so into the real estate game that you will keep raising your goals and you will start buying more real estate. Thus accumulating more debt while paying down more debt from previous properties. so I think even though your reach your goals , I think you will re set your goals and set them higher . Enjoy the ride and good luck.