Dan Crosby, a real estate investor and serial entrepreneur, joins the podcast to discuss the age old debate of real estate vs. stocks. They cover topics such as the advantages of leveraging in real estate, the financial success achieved through real estate investing, and overcoming fear of leverage in real estate.
Real estate investments offer significant wealth and financial freedom compared to covered call ETFs and should not be ruled out as an asset class.
Intelligently leveraging real estate investments, with a small down payment, leads to outsized returns and cash flow, while misconceptions and fears surrounding leverage often hold people back from achieving financial success.
Deep dives
Real Estate vs. Stocks: The Middle Class Debate
In this podcast episode, the hosts discuss the ongoing debate between real estate and stocks as investment options. They argue against the common belief held by the middle class that stocks are safer and better than real estate. They highlight the flaws in such thinking, emphasizing the importance of not ruling out any asset class and the limited potential of covered call ETFs in providing financial freedom compared to real estate investments. Drawing on personal experiences, they emphasize the significant wealth and financial freedom that can be achieved through real estate investing. They also explain the concept of leverage and its value in real estate, allowing investors to put down a small fraction of the total asset value while gaining outsized returns and cash flow. They debunk misconceptions about leverage and address common fears related to debt and tenant-related issues.
The Power of Leverage in Real Estate
In this segment, the hosts delve deeper into the concept of leverage in real estate. They explain how leveraging real estate investments can lead to significant gains and financial freedom. They emphasize the advantage of putting down a small percentage of the property value and gaining leveraged returns on both appreciation and cash flow. By comparing the challenges of leveraging stocks versus real estate, they highlight the lower risks and greater stability of real estate investments, as even if a property generates zero income, its inherent value in terms of land, location, and physical assets remains. They also address common fears surrounding leverage, acknowledging that while it can be intimidating, when used intelligently and in quality locations with solid fundamentals, it serves as a powerful tool for building wealth.
The Middle Class Fear of Leverage and Overcoming It
In this final section, the hosts address the middle class fear of leverage and explain why it often holds people back from achieving financial success. They acknowledge the aversion to using borrowed money and share personal anecdotes related to this fear. However, they highlight that this fear is based on a misunderstanding of leverage and its potential benefits. They emphasize that intelligently utilizing leverage in real estate, rather than avoiding it completely, is the key to getting ahead financially. They caution against over-leveraging and emphasize the importance of investing in quality properties in solid locations. They underscore that leveraging properties with reliable cash flow and using the bank's money can lead to financial security and wealth accumulation, while avoiding leverage may keep individuals trapped in the middle class indefinitely.
In this episode of The Blueprint for Financial Freedom, Dan and Scott discuss the age old debate; real estate or stocks.
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https://anchor.fm/DanCrosbyCEO
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Dan Crosby is a real estate investor, serial entrepreneur, and car
enthusiast. Dan is the founder and CEO of Canadian Protein, one of
Canada's largest e-commerce supplement brands with a market
capitalization of more than $100 million, and Coachwood Capital, a
real estate investment firm with more than $100 million in assets
under management.
Dan also owns Coachwood Golf & Country Club as well as the limo
company Luxxis VIP.
Dan discusses business advice, entrepreneurship, and the mindset that
led him to a $200 million net worth and how he plans to get to $1
BILLION on this channel.
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Links to Dan’s businesses:
