Strategic Synergism at work. Also, paying off debt with other folks’ money is fun. The idea here is that the investor needs to realize the goal: Income in retirement is paramount.
Lately, we’ve had a series talking about notes. What we’re going to talk about today is: how do notes fit in to a well thought out investment plan for retirement? One of the things that I tell people is you’re investing for retirement income; you don’t need income now. You have so much income, in fact, you’ve been able to build a nest egg in order to invest in real estate notes and other things. Income is not your problem. Matter of fact, if somebody talked to you now about how much money you make at work, you’re probably going to tell them a higher figure five years from now. So income today is not your problem. This is why when you get income from notes, and you’re note investing or profits from non-performing notes that you’ve invested in via groups, you can take that after tax note income and you can apply it to the reduction of loan balances on real estate in which you’ve invested. What that does is speed up your timeline tremendously. The faster you can get your real estate investment property or properties free and clear of any loans, the faster you’ve added entire pages of options on your menu. Once you’ve done that, you are allowed to really expand your horizons as far as making big advances on your plan for retirement. As you go forward, understand the more options that you create, the better off you are. The investor with the most options always wins. When you’re combing the income from an outside source to help you get rid of your real estate debt in combination with the real estate’s own cash flow and your own income that’s disposable, you are way ahead of the game. So use not income and note profits synergistically to eliminate debt whenever possible.