Spending Someone’s Hard-Earned Pay – jonathanmuse.com

Spending Someone’s Hard-Earned Pay

Looking for something meaningful, fulfilling, philanthropic, and charitable to do with your time and money? Invest in rental property.

I speak from experience as one who has been a beneficiary of several good people’s decision to grow their wealth by purchasing and renting out houses. Your prospective decision to make space available for a young couple with small children could make a veritably huge difference on the trajectory of their life, and on the life of their children. The effects of a family having sufficient space to accommodate their children during those kids’ formative years are compoundingly positive (just the removal of the stress that comes from trying to raise young children in an apartment alone makes a difference (see: Gabor Mate’s The Myth of Normal)). In the Atlanta/Metro-Atlanta market, housing is scarce: especially affordable housing. And if you’re in the position to consider purchasing an investment property (the down payment might be less than you’re thinking (call me)), then you might not realize how expensive renting is these days (especially with inflation and all), particularly in the areas where there are jobs that pay enough to enable someone to afford rent.

“The best way to become a millionaire is to borrow a million dollars and have your renters pay it off.”

Whatever activities come to mind when you consider charitable uses for your time and money, ask yourself: how long term am I thinking here? As much as you might think someone needs to hear the Gospel taught by your favorite preacher or guru (whether that preacher be Dr. Gabor Maté, Glennon Doyle, Deepak Chopra, Oren Sofer, Kevin Flynn, N.N. Taleb, John Smith, or whoever), consider what James said:

From the house we rented during our time in Johnson City, TN. So many wonderful memories.

What use is it, my brothers, if someone says he has faith, but he has no works? Can that faith save him? If a brother is without clothing and in need of daily food, and one of you says to them, “Go in peace, be warmed and be filled,” yet you do not give him what is necessary for his body, what use is that? In the same way, faith also, if it has no works, is dead.

James 2:14-17

“OK, Jonathan, I’m thoroughly convinced of the moral imperative upon me to purchase rental property. But how could I possibly qualify for another mortgage?? And I don’t have time to be a landlord for pity’s sake!!!!”

Enter: The DSCR loan. It stands for debt service coverage ratio. Basically you qualify on the potential rent for which the subject property appraises. And, you talk to a loan officer (such as yours truly) who will do his/her due diligence and factor in all of the relevant factorables (such as property management, which you will outsource to a PM company). You work backwards from the potential rent and find a property+loan-product combo that fits all of your criteria.

“The best way to become a millionaire is to borrow a million dollars and have your renters pay it off.”

Jack Miller – I found this quote on GaryNorth.com

So, what are your thoughts? Seriously, please leave a comment. I invite you to envision all of the positive impacts on your life, family, and community that could come from your decision to grow your wealth through real estate investment. After all, you’re not half bad right? You’ll at least be a better landlord than the detestable slumlords who take advantage of widows and orphans at their most vulnerable! And, seriously, please, if you are even the tiniest bit considering making such an investment, reach out to me and let’s talk. We’ll talk numbers, we’ll draw charts; it’ll be a great time. Please tell me in the comments what you’re waiting for.

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