In this episode of The Casey Lewis Podcast, I talk about 2 financial products that are absolutely terrible for you and I answer a new question from the internet about real estate investing.
Launch Out Conference:
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Terrible Financial Products:
1. Vacation Loans
- $1,500 loan at 7.9% for 3 years is a $47/month payment and the interest is $192.
- Invest just the interest from that loan and it turns into $9,000 over 40 years.
- People get trapped in a cycle of borrowing because they can’t afford to save.
- Causes them to not be able to get out of debt, plan for kids college, retirement, etc.
- Find cheaper ways to still do family vacations without needing to borrow the money.
2. Auto Rental Scam
- Primary client base has bad credit, no money for down payments, no bank account.
- Instead of lending them money to purchase a car at a high rate, they rent them an old used car at a high weekly rate ($600+/month)
- Leads to a cycle of poverty that is very difficult to break out of.
Brad – “I’m thinking about flipping houses as an investment. What are your thoughts on this?”
- Real Estate is a fantastic investment!
- Only buy investment real estate with cash
- Real Estate makes money 4 ways:
- Deal on the purchase price
- Home appreciation
- Cash Flow
- Tax Advantages
- Flipping houses is more risky than rental investments.
- Know your market very well
- Speed is the key to maximizing profits.