Now, some of you may be wondering… Why did Jason put the word wealth in quotes? That is a great question.

Let me explain… My mentor taught me that the true definition of wealth is very simply this: the number of days, weeks, months, or years could you live your current lifestyle if you never went to work again. So ask yourself this question. If I quit work today, how long could I sustain myself? For many, the answer to this question may be somewhat shocking.

Why do I bring this up? Another great question that I am happy to answer.

One of the great myths of real estate and property ownership is that individuals should count their home as wealth.  If you have considered the definition of wealth my mentor offered me above, you will undoubtedly find holes in the theory of your home being “wealth”. If anything, your home is anything but wealth.

Obviously, if you carry a loan on your property, you will note that the repayment of that loan requires wealth to service the debt. This requirement would certainly shorten the amount of time you could sustain your lifestyle should you stop working or retire.  This requirement of  your real wealth, your monthly payment, is the only thing that prevents your note holder of separating you from your home or what you may have been calling “wealth“.

So now lets look at a not so obvious situation. What if your home is paid for? Is it now counted as real wealth? Let us again ask the question previously taught as the definition of wealth. Would your home that is paid for and free and clear now be contributing to the number of days you could maintain your lifestyle without work or not? I think you already know the answer. Even a home that is paid for requires your existing wealth to remain in your possession.

Property that is paid for requires you to pay property tax, insurance, maintenance, hoa fees, and utility bills to name a few. So even if the property you live in is paid for, you will be the one paying out of your real wealth to enjoy the use of the home.

The question then becomes: How is money made in real estate? Think about it… Many wealthy people have made fortunes in real property and many more will too. The real difference is understanding what wealth is and what it is not.

Real wealth pays you! Anything you own that pays you adds to your wealth. Or put another way, anything pays you contributes to the amount of time you could sustain your lifestyle without working.

In the real estate world this thing that pays you is called investment property, and there has been no better time in history to take a look at how investment properties can protect your cash, your future, and perhaps the futures of your family for those who truly understand what buying investment property is all about.

Now that you know what real wealth is, take 5 minutes and learn how investment property can put you on a faster track to your financial goals.