Why I Own Over $3,900,000 in Real Estate


hey what’s going on guys it’s Daniel one
half of the Kwak Brothers and in this video we’re gonna talk about why I own
$3,900,000 of real estate. que that intro and let’s go!!! alright guys now
I know what you might be thinking is like well Daniel who wouldn’t want to
own 3.9 million dollars worth of real estate but guys there’s reasons that a
lot of people don’t understand when it comes to real estate the benefits of
owning it so we’re gonna go ahead and get into four different reasons some may
be obvious some may be not but we’re gonna go into four reasons as to why
it’s essential and beneficial for you to own real estate and these are things
that affected me personally that I’ve enjoyed through owning my portfolio so
number one thing guys the number one thing that everyone’s gonna talk about
is cashflow now what is cashflow well think about it this way guys right there
I remember there’s a story that my mentor shared with me and I’m aroused in
this business conference and you know I was 19 years old and I was just getting
started in the world of entrepreneurship and I was at this event I was wearing a
suit because it was a very business casual and he came up to me and he said
Daniel how much are you wearing and I was like what do you mean man to get
this creep out of here right and he was like no for real like how much are you
wearing in terms of monetary value how much are you wearing on your clothes
right so I was like oh okay that’s a fair enough question so you know this
suit right it was a cheap suit from I think I bought it at like some
secondhand store and I remember paying like $140 for both the jacket and the
pants and I think the dress shirt was around like 30 bucks aw is that like 170
and he was like okay what about like your shoes
right and I actually had decent shoes because my dad bought some pair of dress
shoes for me and they’re like about 150 bucks and and he’s like okay great so
170 plus 150 where 320 you know what about the watch the socks right I was
like I could probably tack on another 30 bucks so we’re at 350 and what about you
know your belt and what about your coat that you’re wearing because you know
Chicago we have really cold winters I was wearing a winter coat and between
the coat I watch my suit my soft everything that
I was wearing it was around 500 bucks right $500 and I remember he asking me
do you work a job right now and I was like yep I absolutely do he
says how much you get paid and guys don’t laugh please don’t laugh at me but
I used to be an art model so when I was 19 and I was working in my university I
actually worked as an art model for the students to draw for like their
portraits I used to pose with not a whole lot of clothing on me but it’s so
again don’t laugh I can feel you judging me through those lenses through the
screen but don’t judge me right I used to sell my sell my body for money that’s
right I know it’s part of my past guys you know everybody’s got their dirty
secrets right but no I used to just pose right I didn’t do anything that was
crazy but I used to make 825 an hour and so the guy that I was talking to right
my my then mentor he says okay 825 an hour you know what let’s round it up to
$10 an hour how would you like to make $10 an hour and I was like wow that’s
fantastic I would love to make $10 an hour and he said great how many hours a
week do you work and I’m like well I work you know I think around like five
five hours a week and it wasn’t much right because the class was only on
Mondays and Thursdays and it’s her two and a half hours so I worked only five
hours and it was miserable I hated it I always got cramps and there was a lot of
lights on me so I got sweaty and so it was just awful
and he’s okay what if you worked 50 hours a week right 50 hours well you
know what let’s bump it up to 60 hours a week right and I was like man 60 hours a
week that’d be awesome I’d be making so much more money than I am now I’d be
super happy and he’s like okay great so let’s do the math you got $10 an hour
you got 60 hours a week that’s $600 a week and for me I was like man that’d be
fantastic that’d be awesome that’d be wonderful right and he says
okay so you make 600 let’s say you take $100 off her taxes and you’re left with
$500 and he asked me does that number sound familiar to you I was like yeah
you’re wearing a week of your life and that right there it changed my mind so I
started thinking more along the lines of cash flow how can I have money coming to
me every single month without me having to
put in 60 hours a week would if I could create a system with it cuz I could buy
an asset an income stream in which I can get that cash flow coming in every
single month and I don’t have to put in 60 hours I don’t have to put in 100 200
300 let’s do the math guys if you’re working 5 days you’re working 8 hours a
day that’s 40 hours a week times that by 4 weeks in the month that 200 hours a
month you multiply that by 12 that’s 2400 hours a year 2400 hours a year
that’s insane guys that’s 2400 hours of you not spending time with your friends
your family you’re not experiencing life you’re not doing the things that you
were put here on this earth to do so number one cash flow number two
something eyes call equity accumulation so let’s put in equity you know they say
that cash flow is king I say equity is God because why cuz equity is that long
term success that long term wealth that you’re looking for you know I travel
around the country a lot I was just in Dallas this past weekend at the time of
this recording of this video and I explained to a lot of people guys listen
cash flow if you want to get rich look for cash flow if you want to get wealthy
look for equity so when you own real estate when I own like 3.9 million
dollars of real estate and what makes me happy is that not only do I collect the
cash flow but I’m also building the equity to the point where all the real
estate that I control and owned I know I’m gonna be able to own it outright as
in I’m gonna have no debt I’m not gonna have a debt service that I pay to every
single month and I’m gonna be able to control and own all of that equity to my
name that way I’m not liable for anything so one of the things I see
commonly that real estate investors make is they always go for the cash flow but
they completely disregard the equity portion matter of fact they do this
something called refinance and they’ll take money out of their building they’ll
strip the equity out and turn it into more cash so they can buy more buildings
why would you do that guys you’re literally taking money away from your
future trying to do more things today I say do the reverse do more things
today that your future self is gonna thank you for one of the questions I
always ask myself how can I do what can I do something
today that 10 years from now Daniel is gonna thank me for focus on the equity
guys so we got cash flow equity we’ve got a third reason and that’s
appreciation what is appreciation well it means that it’s gonna get more in
value it’s gonna get higher in value every single day now is that absolutely
true of real estate on a day to day basis no right we saw in 2008 that real
estate values can go actually below it can go lower than what people buy it for
right but if you’re looking at 30 40 50 years is real estate eventually going to
appreciate absolutely you betcha so for me I know my 3.9 million dollar
real estate portfolio right is going to be a lot higher even if I don’t do any
more deals when I’m 45 years old when I’m 55 years old thirty years from now
when I’m 65 years old forty years from now I know it’s gonna be worth
significantly more because it’s gonna have natural appreciation by the way
guys there’s four different ways to appreciate a property I’m not gonna get
into it right now if you want to learn more check the links in the description
the last and final reason why I own 3.9 million dollars worth of real estate is
depreciation depreciation is the tax advantages that you get by buying and
holding a rental property well how do we calculate that well typically you take
80 percent or whatever the building value is of your purchase price so you
subtract the land value you divide it by twenty seven and a half and it’s the
amount of depreciation and tax advantages that you’re gonna get every
single year for owning an apartment complex for owning a multi-family
building or any investment property now there’s a lot of different things that
you can do you can do stuff like cost segregate depreciation again guys if you
want to learn more information about that well check out the links in the
description below but overall guys why do I own 3.9 million dollars worth of
real estate guys it’s simple not only is it for all four of the reasons that I
listed below here in this white board right there you see behind me but guys
the main reason the main reason that I am I’m owning 3.9 million dollars worth
of real estate and I absolutely love it and I thank God for it every single day
is that I get to pursue my purpose I get to wake up every single morning and ask
God God what do you want me to do today who can I help out who can I serve it
gives me time to serve the fatherless children the homeless the people that
are hungry it allows you to make more of an impact instead of making a living I
get to make a difference instead of making a paycheck and ultimately guys
that’s the number one reason why I love owning 3.9 million dollars worth of real
estate so again guys if you want to get on the same track check out check out
the links in the description below if there’s any any ways that I can help or
if you want to give me any feedback at all write comment down below what you
guys think if you own real estate tell me why you love owning the amount that
you own in your real estate investment portfolio again guys don’t forget to
subscribe and like this video it helps us out it helps us push this video to
more people said that they can also reach their purpose and their goals as
well thank you guys so much I appreciate it feel free to like and subscribe much
love to you I’ll see you guys in the next video

4 Replies to “Why I Own Over $3,900,000 in Real Estate

  1. This video is golden, motivational and should plant a seed in peoples minds to see the big picture and get the most you can out of life on your own terms. I’ll be sharing this video with many that need to hear this today. Awesome job Daniel! 🙏🏼

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