Power 180 - What does $100,000 look like to you?

Welcome back to the newest installment of Power 180- 3 minutes of Housing Literacy that can change your life (sponsored by Powerful Homes). For today’s question, let me ask you, what does $100k look like to you?

Is it your bitcoin account?
A stock portfolio?
Some precious art work?

For half of all Americans today…that is the amount of their total net assets at the END of their lives. Sadly, the other half have nothing at that point.

Here at Powerful Homes, we see real estate when we talk about financial resources specifically the EQUITY you have in a home. To illustrate this point, I would like to take you through a quick example of a property that I bought about 7 years ago in Aurora CO on Wabash Street.

Buy price: $75k
Remodel cost: $100k
Sale price: $275k
Today’s net value: $425k
Total net equity: $250k

There were lots of ups and downs alone the way to creating this value and I ended up selling the property during this process and DID NOT retain the equity in the property in this case. The big point is that there are many ways to invest including alternative investments like Bit Coin, NFTs and other more traditional opportunities like stocks, bonds and operating businesses.

One thing that EVERYONE needs is a home and place to live long term.

Why not own that place and over time…retain the equity that increases every year over the long term will provide massive resources that can change the entire trajectory of your life?

You are only ONE DECISION away from a totally different life. Until next time, as always feel free to reach out to Matt directly. send a text to 303-885-1644 with any questions!

Episode Transcript:

Welcome to the Housing Literacy Podcast with host Matt Guarino, founder of Powerful Homes. Matt's mission is to empower dreams through home ownership. We're here to help. We're going to do this together and now Matt Guarino.

My name is Matt Guarino, and this is Power 180, 3 minutes of housing literacy that can empower your dreams and change your life. So today's question is what does $250,000 look like to you? What pops up for you? Is it your Bitcoin account? Is it a stock portfolio, some precious works of art hanging in your house. For half of all Americans today, that amount, $250,000 is the total of the net assets at the end of someone's life. It takes a lifetime to create that. Sadly, the other half of Americans have nothing, zero net worth, zero net assets.

So here at Powerful Homes, we see real estate. When we talk about financial resources, specifically, the equity a person has in their home, either their house they live in or an investment property. And equity simply is the amount that a house is worth after selling costs less than the amount of debt on it. That difference you get to keep and it's equity that you can turn into cash when you sell it. So illustrate to illustrate this point. I'd like to go through a quick example of a property that I bought about seven years ago in Wabash Street in Aurora, Colorado. And I'll take you through these numbers quickly, but in the show notes of this episode, we'll have all the details.

But just quickly again, to illustrate a point, to get really specific. So you can see what we see. We see a home, but the buy price, believe it or not was $75,000. The remodeling costs, this was an investment property for me at the time was about a hundred and the net value at that time when it was sold was 275. So there was a hundred thousand and then today's value, I sold the property or that it was sold is 425. Believe it or not seven years later. So the total is a quarter of a million dollars of equity.

There were lots of ups and downs on the way to creating that increase in value. And I ended up selling it to someone else. And so I didn't retain all of the equity and the profit, but the big point is that there are many ways to invest, including alternative investments like Bitcoin and NFTs and other more traditional opportunities like stocks and bonds and operating businesses. But the one thing that everyone needs is a home. They need a home to live in long-term. So why not own that place? And over time retain the equity, which it can be profit and turn into cash every year over the long haul and provide massive resources that can change the entire trajectory of your life, right? You have to live somewhere. So it's a simple choice of a decision of renting or owning.

What we say here at Powerful Homes is we love it for people to buy as early as possible and to hold as long as possible. So today's final quote that captures all of that is "you're only one decision away from a totally different life." You got this.

Thank you for listening to another episode of the housing literacy podcast. Don't forget to like comment and hit that subscribe button and stay connected with Macarena by visiting www.powerfulhomes.org.