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How to Get Rich Using Other People’s Money – Jaren Sustar

💰 Private Lender Guide and Private Lender Presentation: https://bit.ly/4el5y22

In this episode, we dive into one of the most powerful strategies in real estate investing: leveraging Other People’s Money (OPM) to build wealth. If you've ever wondered how to invest in real estate without putting up a large amount of your own capital, this episode will change your mindset and give you actionable steps to get started. Host Jaren Sustar shares his own journey and breaks down the key methods that can help anyone scale their real estate portfolio using OPM.

Why Real Estate?

Jaren shares how real estate has been a historically reliable wealth-building tool. When he started buying rental properties in 2018, his goal was financial freedom. Real estate, with its ability to provide both time freedom and financial security, has consistently been a path to wealth for many investors. Whether it's through rental income, property appreciation, or tax benefits, owning real estate can put you on the road to financial independence.

The Six Pillars of Real Estate Wealth

Jaren outlines the six foundational pillars of real estate investing:
1. Leverage: Buy properties with little to none of your own money, which is unique to real estate.
2. Forced Appreciation: Increase property value by making improvements.
3. Traditional Appreciation: Property values tend to rise over time.
4. Cash Flow: Income earned after all expenses are covered.
5. Debt Pay Down: Tenants paying down your mortgage.
6. Tax Benefits: Leverage depreciation, 1031 exchanges, and refinances to reduce taxes.

Strategies for Leveraging OPM

Jaren explores the three key methods for using Other People’s Money to fund your investments:
1. Private Lenders: Individuals in your network who prefer passive investing.
2. Hard Money Lenders: Companies providing short-term loans for real estate projects.
3. Institutional Lenders: Banks or DSCR lenders offering long-term refinancing options.

The BRRRR Strategy

Jaren highlights the BRRRR method as a winning formula for scaling your real estate investments:
- Buy: Purchase a distressed home using private lenders or hard money loans.
- Rehab: Improve the property to increase its value.
- Rent: Generate cash flow by renting out the property.
- Refinance: Secure a long-term loan at a higher valuation to pay back lenders.
- Repeat: Use the refinancing proceeds to fund your next deal.

Real-Life Example

Jaren walks through a real-life example of purchasing a $100,000 property, renovating it to increase its value to $150,000, and refinancing at 80% to cover the initial investment and turn a profit.

0:00 - Introduction
5:30 - The six pillars of real estate wealth
12:00 - Strategies for using OPM
18:45 - Understanding the BRRRR method
25:00 - Real-life examples of OPM in action
30:00 - Conclusion: Building wealth with OPM
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Disclaimer: The information provided in this video is for educational and informational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument or engage in any financial activity.

The content presented here is based on the speaker's personal opinions and research, which may not always be accurate or up-to-date. Financial markets and investments carry inherent risks, and individuals should conduct their own research and seek professional advice before making any financial decisions.
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Robert Kiyosaki
Robert Toru Kiyosaki (born April 8, 1947) is an American businessman and author. Kiyosaki is the founder of Rich Global LLC and the Rich Dad Company, a private financial education company that provides personal finance and business education to people through books and videos. The company's main revenues come from franchisees of the Rich Dad seminars that are conducted by independent individuals using Kiyosaki's brand name for a fee. He is also the creator of the Cashflow board and software games to educate adults and children about business and financial concepts.
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