The Realtor made $13,000 on commission just for showing me that house. That’s when I decided to get my real estate license. I mean, my agent only went to the property twice! I did most of the work and the agent received a nice, fat check. Then on the Housing and Urban Development (HUD) form, I saw all the fees the buyer pays versus the money the seller pockets. The seller made $100,000 after only owning the property for 10 years. Imagine buying a two-family home, renting out both units for a decade, then v selling it at a six-figure profit. I thought if I can buy 9 more properties, rent them out, and sell them in 10 years for a profit of $100,000, I could be a millionaire by the age of 35! My experience with that property had a lasting impact on me because of the lessons I learned which drove me to take my real estate career to the next level. The fact that I could earn rental income from a property when positioned the right way, earn appreciation in equity which results in cash, as well as be able to take advantage of tax write-offs were valuable realizations for me.
What held the most weight overall for me, however, is the intangible feeling and responsibility of being Lord of My Land. It positioned me in a better status and even put me in recorded history in its own way. When you own property, you are recorded in the town’s tax records. You are officially Lord of that Land, anyone on your property is subject to your authority. These are the reasons why I believe everyone should understand how simple the principle is. Everyone should be knowledgeable on the home buying process, the required strategy and mindset that’s needed to purchase your first home. In my experience as a real estate developer, strategy coach and mentor we often get caught up in the higher level vi conversations regarding real estate investing, flipping and building a portfolio with commercial properties. I felt it would be more beneficial to come back to my roots, providing everyone the simplest, most inspiring blueprint on how to become Lord of Your Land and buy your first home.
JAY MORRISON Whether you are single, married, or engaged, it is important to own property in order to start building wealth and set yourself up for the home’s appreciation, or increase in value over time. It’s a great financial play for an individual. There are also many tax benefits in owning a home. Items such as your mortgage interest and closing costs are tax deductible. If you own a multi-unit, some of the maintenance and repairs are tax deductible as well. Even property depreciation is tax deductible. There are many more tax incentives, but I’m sure you are getting the picture.
Owning a property just makes a lot of sense financially. Bear in mind if you are a renter, whether you are living with somebody or you rent a property, you can spend anywhere from $1,000 up to $5,000 per month and find yourself living in a beautiful penthouse or regular middle class apartment. However, no matter what you spend on rent during the year, none of it is tax deductible, or sets you up for future appreciation or equity, nor does it put you in a position of ownership. All it does is keep a roof over your head. So, if you could own a home for the same amount you pay in rent every month or perhaps a little more, it’s worth the sacrifice. It may mean eating out a little less frequently, buying fewer clothes, or just cutting back on other costs for the sake of owning.
The reward is investing into your own future as opposed to somebody else’s by continuing to rent. Homeownership is the best chess move you can make because we all need a roof over our heads, so why not put yourself in the position of owning that roof instead of renting it and metaphorically and theoretically throwing your hard earned money away The reward of ownership will be an investment into your future rather than into someone else’s family legacy. Long term, it puts you in a better financial position. From a renting standpoint, all you get back is a security deposit and typically not 100% because the landlords always figure out a way to retain some of that deposit money. Let’s LORD OF MY LAND 3 say you live somewhere for 5 years paying $1,000 a month, that is $60,000 over that time period.
The latter figure adds up to almost $1 million in rent when you could have paid off a $500,000 mortgage in full and had that much equity built in that home for you, your spouse or your kids to be able to utilize. Not to mention the extra $400,000 you would have kept in your pockets! Being lifetime renters, we do a disservice to our families by not leaving them anything substantial in terms of property, land, or the benefits of actually having owned in that time period.
We do not set a good example due to lack of understanding homeownership and falling short of taking the necessary steps to conquer the fear of educating ourselves to pursue owning our own homes. We plant the seeds of fear and misconception that real estate is not for us (our type of people or our type of family). Real estate and ownership is for everybody! That’s why I have provided a blueprint for homeownership and outlined the necessary steps to becoming Lord of Your Land. JAY MORRISON 6 An important byproduct of owning a home that affects individuals and families is a renewed boost of character, as well as a newfound sense of responsibility.
Responsibility is a fundamental trait required for anyone who wants to be great and do anything substantial. Some people avoid taking the steps to owning a home because they shy away from the responsibility of maintaining the home and prefer to pass that accountability on to the landlord. In doing that, the landlord not only inherits the responsibility, but also receives what you pay them in rent, in addition to the appreciation on the property. In essence, what starts out as ‘passing the buck’ to dodge liability, is actually irresponsible and sets a bad example for our children.