As it relates to financial wealth...

[stormshadow]

Home equity can be a very powerful tool to leverage.  So can your Credit.

The key is to leverage what you have in order to create cashflow.  Then use the cashflow to pay down your liabilities.

I have leveraged my credit score to obtain unsecured debt.  This enabled me to purchase an asset that pays me over 9,000 per month (after debt service).  So that is roughly 108k per year in passive income.

With 9,000 per month I will then pay off the lines of credit and still have the asset.  I am also using that cashflow to build another business, and have a third stream of income (1. Job, 2. Interest income from Hardmoney lending, 3. Passive income from RE).

Slow and steady does not make you rich.  You do need to take calculated risks, and not constantly run at the redline.

[MindSpin]

Home equity can be a very powerful tool to leverage.  So can your Credit.

The key is to leverage what you have in order to create cashflow.  Then use the cashflow to pay down your liabilities.

I have leveraged my credit score to obtain unsecured debt.  This enabled me to purchase an asset that pays me over 9,000 per month (after debt service).  So that is roughly 108k per year in passive income.

With 9,000 per month I will then pay off the lines of credit and still have the asset.  I am also using that cashflow to build another business, and have a third stream of income (1. Job, 2. Interest income from Hardmoney lending, 3. Passive income from RE).

Slow and steady does not make you rich.  You do need to take calculated risks, and not constantly run at the redline.

word.

[Tre]

Tre, I have Four grand I'd like to invest in a new pair of Rims for my truck.

I feel that by high-signing them all up and down my street, their value will appreciate among my friends and enemies alike.  in a few months, I will sell them and use the profits to buy nicer rims.

Please share your opinion on my investment philosophy.

Are you Black?  If so, then yes, you get those rims! 

Trucks do typically hold their value better than cars, and a nice set of rims could actually appreciate in value over time if you make it to the NBA. 

[MindSpin]

Are you Black?  If so, then yes, you get those rims! 

Trucks do typically hold their value better than cars, and a nice set of rims could actually appreciate in value over time if you make it to the NBA. 

If he wants to become "Hood Rich" then he is on the right path...

[Tre]

Slow and steady does not make you rich.  You do need to take calculated risks, and not constantly run at the redline.

People have to run at the pace that's comfortable to them, but let's not overlook the importance of luck and timing.   

I lucked out on an investment early last year. 

I had been saving up to buy a home and was planning to attend law school in the midwest.  When my daughter's mother changed her mind about moving, my buddy and I then decided to invest almost all our cash in a new business venture.

Things have turned out very well, but if I'd bought a home in California in early '06, I'd be upside down in it right now.  And if I'd gone to school, I'd be almost $70,000 in debt and have nowhere near the income I have now. 

In other words, I lucked out that my ex-wife decided to be a bitch and changed her mind about moving in order to start a new life elsewhere. 

[Tre]

If he wants to become "Hood Rich" then he is on the right path...

It's really killing me that I have to choose between repairing my 11-year-old car and buying something newer. 

The fact that my car is so old has long been a badge of honor for me, but paying more than its value to repair it might not make good financial sense.  My point has already been made, but I like the personal value I get from continuing to walk the walk.