Michael Perna has been investing in rental properties since he was 20 years old. But one comment from Gary Keller, President of Keller Williams Realty, completely changed the way Michael thinks about building wealth with real estate.
On this episode, Michael shares why he believes time is the most powerful force in real estate investing and why he has decided he will never sell his properties. Instead, he plans to hold them for life and eventually pass them down to future generations.
Michael explains why he is willing to buy properties that may not work as traditional long-term rentals today. In some cases, he operates them as short-term rentals until rent growth makes them profitable as long-term rentals. His philosophy is that investors shouldn't obsess over what a property makes in year one or two. They should be looking five, ten, or twenty years into the future.
We talk about how Michael got started using FHA loans with just 3.5% down, the wealth he has created through rent growth and appreciation, why he says money is a function of time, and whether cash flow or appreciation matters more.
We also break down one of Michael's recent deals, including how he found the property and structured the purchase by taking over the seller's 3.5% interest rate.
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