Smart investments, do you know what they are? Where do you look for them? That’s today’s video, smart investments. Let’s dive in. What in the heck is a smart investment?
Hey everyone, I’m Clayton Morris. I’m the founder of Morris Invest. I’ve rehabbed hundreds of homes in some markets all across the country, gosh knows, Indiana, Michigan, Pennsylvania, Florida, Virginia. I can’t remember, but I’ve done a lot of homes.
And I have a lot of experience in real estate investing. And I own a lot of homes,
personally, that cash flow month in and month out with quality tenants fully managed for me by great property management teams that I work with. So that’s how I’ve been able to build passive income over the years. And those are the investments that I started strategizing and targeting a number of years ago. Look I used to be in the stock market heavily. I used to play different penny stocks when I was in college and didn’t know what the heck I was doing.
What else did I do? God knows I’ve invested in life insurance policies. The list goes on and on and on about the different strategies and tactics and smart investments that I thought I was making over the years.
You’ll often hear people in your cocktail parties and over coffee people say, well, that sounds like a smart investment. Yeah that sounds like a smart investment. Smart investment, yeah that was really smart– you watch TV. You watch CNBC or Fox Business, you’ll see a lot of investors talking about what is a smart investment right now. I should invest in caterpillar diggers or people that make rail cars right now. Because people need railroad lines. Great, great, great, that may be a smart investment for a short amount of time. To me a smart investment has three key components.
Now number one is track record and history. I’m a history major. I was a history major in college. And I think you can learn so much from the history of something, so that we either don’t repeat it or that if it’s working, we continue to repeat it. Right, makes sense? Why repeat something that’s not working? But if it is working, why reinvent the wheel, right? The wheel works. We don’t need to make a square wheel.
I know that seems dumb, but it’s the truth. So when I look at an investment, like real estate investing, owning single family or multifamily properties that are cash flowing– I’m not overpaying for these properties and I’m adding value to these properties. And God knows I have tons of videos here on the channel on how to do all of this. I’m speaking in broad strokes right now. But when I own real estate, the track record of owning real estate in this country– did you know that more millionaires and billionaires in the United States of America have been made from real estate than any other form of investing, hands down.
And what I love about it is, chances are there are real estate investors in your neighborhood. You wouldn’t even know it to look at them, because they’re not flashy. They don’t wear it on their sleeve, but they are millionaires, right? It’s The Millionaire Next Door, famous book, right? There are so many of these investors out there who are quiet ninjas who own 10, 15, 20 rental properties and whose net worth is now increased by that exponential number of properties they own.
And that extra additional cash flow is being funneled back into the property to pay down the mortgage even more quickly. In a down economy history tells us that the C-class neighborhoods where I invest in and buy my properties, you will not see a dip in your rental income. I look at a number of different indicators. A lot of different investor partners and friends over the years and I’ve owned real estate and rental real estate in down economies, what all know– what they will tell you is– and they’ll say this overwhelmingly.
So to me, I can’t think of an investment that has less risk than real estate investing. Those tenants stay for a long time. They produce cash flow. You’ve got insurance on the property. You’ve got a great
management team in place to take care of those little fiddly things, like an eviction, or a leaky toilet, or those types of problems. You’re buying the property in an LLC, I hope.
We’ve got a video here on the best legal entity to buy your real estate. So to me I see rental real estate is one of the least risky things you can do. I’d much rather have my money in something tangible, something I understand than in a company, who I don’t know what they’re doing in their boardroom. So I have my money tied up in some massive company and they make some huge mistake.
Look what happened in the Gulf with BP and the oil spill. I’ve nothing to do with that, and yet maybe I was an investor with them. I wasn’t, but you get the point. I have no control over that. I do with having rental real estate. It’s producing monthly cash flow for me. And that is key. So those three factors, number one, history and a track record, number two, cash flow, number three, low risk, when you tie it all up, owning rental real estate for passive income, to me, it makes all the sense in the world.
I’d love to hear your feedback on this. If you disagree with me, great. If you agree with me, great. Please leave your comments in the description below. We publish videos three times a week, every Monday, Wednesday and Friday at AM.
So please, check them out, and we’ll be back here to see you again next time. In the meantime, folks, I want you to go out there, take action and become a real estate investor. We’ll see you next time..
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