We’ve been sold a lie.
That working harder, grinding longer, and staying disciplined would eventually get us ahead. But if that were true, the hardest working people would be the wealthiest—and we all know that’s not the case. The rules have changed. This economy doesn’t reward effort… it rewards ownership. And if you don’t understand that shift, you’ll keep working harder just to stay in the same place.
The economy is and always has been structured to reward people who OWN these two assets
• Stocks
• Real Estate
Unfortunately, over 40% of Americans do not own a single stock and similarly over 35% of Americans do not own any real estate.
Do you want the answer to the middle class disapearance? This is in my opinion the #1 reason. You can no longer study hard in school to get a high paying job that you work hard at to stay ahead of your bills each month. This is why dual incomes are now a necessity to more and more households.
Warren Buffett understood at an early age the power of compound interest and making money in your sleep.
He said, “If you don’t find a way to make money while you sleep, you will work until you die”
This is the reason why you see those sad stories of the 80 year old Walmart employees having to work in order to survive. They worked incredibly hard their entire lives and yet they never had the opportunity or focus on buying income producing assets like stocks or real estate that allow you to keep up with inflation and offer a buffer to the amount of money you have to work for every single month
1. Home Prices vs Wages
Over the past several decades, home prices have grown dramatically faster than wages.
- Since 1985, US household income rose about 255%.
- Over the same period, home prices rose more than 415%.
In recent years, the price-to-income ratio reached around 5–7x income, far above historical norms.
Someone who owns their property benefits from the rising values
Someone who rents their whole life has to work not just more hours to keep up…The multiple has increased to almost 1.5x than what it was a decade ago. This is financial suicide.
Ownership compounds to the point where today there is 35 TRILLION in equity for home owners!
Wages continue to fall more and more behind the increase in rent.
2. The Power of Asset Growth
Now look at what happens when money is invested instead of sitting in savings.
A $10,000 investment growing with the market can multiply many times over.
Meanwhile cash savings barely move.
This is why long-term investors almost always outperform savers.
3. Real Estate
Since medieval times, wealth has largely been divided into two groups:
Those who own land.
And those who work on it.
Kings owned land.
Lords owned land.
Wealthy families owned land.
The rest of society worked.
Hundreds of years later, the game hasn’t changed nearly as much as people think.
In fact, many of our tax laws still strongly favor property ownership:
• mortgage interest deductions
• depreciation
• capital gains advantages
• 1031 exchanges
• property tax protections
THE SYSTEM IS SCREAMING AT YOU TO OWN REAL ESTATE ABOVE ALL ELSE.
How do I know this? Because the tax laws are literally built around real estate ownership. If you invest in real estate, the Federal and State governments are telling you they will reward you more than any of your peers who choose NOT to invest in real estate.
It is that simple. Always has been.
But I would argue that the current administration (I would say he is biased towards real estate investing) has supercharged the reward system around owning more and more real estate to pay less taxes and expedite wealth more than ever before.
The gap between the haves and the have nots in the financial world honestly can be summed up in one category.
Do you OWN vs RENT?
Rents tend to rise over time — often faster than inflation.
This means rental properties benefit from:
• Increasing income
• Rising property values
• Debt being paid down by tenants
Very few investments combine all three.
The Real Wealth Divide
The real divide in America isn’t education.
It isn’t intelligence.
It’s ownership.
There are two groups of people:
1?? People who work for money
2?? People who own assets that produce money
And in very little time, those who own outpace those who ONLY rely on working/earning.
Property Rush Was Created to Simplify Real Estate and Make it Possible for the Average Person to OWN More Assets
This is why I’ve spent the last 4 years completely focused on helping others to acquire income producing & appreciating properties. I am crazy enough to write about this topic every single week and talk to anyone that will listen about the long term advantages to owning real estate.
Real estate combines five powerful wealth drivers in one investment:
• Cash flow
• Appreciation
• Loan paydown
• Tax advantages
• Inflation protection
Very few investments offer all five.
Click here to be part of Property Rush’s “5 in 5” community and schedule a call with BJ to build your customize investing plan.
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