September 6th, 2024 7:33 PM by Eric Willner
Radio Show Notes 09/04/24 Wednesday:
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Real Estate is the I.D.E.A.L Investment!
Midweek Market Report: Flip High-Interest Debt into Profitable Real Estate Assets
By Eric Willner, Mentor, Coach, and Host of The Real Estate Show, America’s longest running daily radio show about real estate.
Welcome to The Real Estate Show – South Florida’s #1 Real Estate Radio Show and America’s longest-running daily radio show about real estate!
My name is Eric Willner, known as the Voice of Real Estate, and I’m excited to be here with you today. I’m also the founder of this very show, which has been on the air for decades, and the creator of the Automatic Landlord System for Owning Cash Flowing Real Estate “Profitably and Hassle-Free.” Whether you're tuning in for the first time or you’re a regular listener, you’re in for a treat because this show is a virtual real estate seminar in every episode.
This is the Wednesday Midweek Mortgage & Market Report Edition of The Real Estate Show, and today, we’re diving into a hot topic: From Liability to Asset: How to Turn High-Interest Debt into Cash Flowing Investments. That’s right! In today's financial landscape, many people are feeling the squeeze of high-interest debt. Whether it’s credit cards, student loans, or personal loans, it can feel like you’re constantly swimming upstream. But what if I told you there’s a way to flip the script—to turn that liability into an asset and start creating income instead?
That’s what we’re going to discuss today. How to take those financial burdens, like high-interest debt, and transform them into investments that pay you back over time. So get ready! We’re talking actionable steps to convert personal debt into productive investments that generate income.
Did you know? Investing just $100 per month with a 7% annual return could grow to over $1 million in 40 years. (Source: Compound Interest Calculator) That’s right—starting small and letting your money grow over time can be powerful. Want to do it in less time? Stay tuned! We’ll show you how.
From Liability to Asset: How to Turn High-Interest Debt into Cash Flowing Investments
Let’s break it down. Debt is a widespread problem in the United States, with more than 77% of Americans carrying some kind of debt, according to the Federal Reserve’s latest Survey of Consumer Finances. It’s no wonder so many feel trapped, with the weight of credit card bills, student loans, and even medical debt dragging them down.
But here’s the good news: you don’t have to stay stuck! By following some key strategies, you can convert that liability into an asset.
One of the best ways to take control of your finances is to start by creating a plan for reducing high-interest debt. If you’re constantly making minimum payments on credit cards with 18% interest rates, for example, you’re not getting anywhere. What you need to do is consolidate that debt into a lower interest loan—perhaps through a home equity line of credit (HELOC) or refinancing into a loan with more favorable terms.
By paying off the high-interest debt, you’ll have freed up cash flow that can be reinvested. Imagine putting that money to work in real estate—purchasing a rental property, for instance, where tenants’ rent covers the mortgage and leaves you with some extra cash every month. Now, instead of debt dragging you down, your investments are lifting you up.
What Happens If You Go Into Debt?
Debt impacts every aspect of life, from financial health to emotional well-being. Financially, it limits your ability to save, invest, and handle emergencies, as more of your income is tied up in repayments. It can also harm your credit score, making it harder to secure loans or favorable interest rates.
These restrictions hinder your long-term financial goals, such as buying a home or saving for retirement. Moreover, the constant burden of debt may lead to sleepless nights, strained relationships, and a reduced quality of life. Over time, if not appropriately managed, debt can spiral out of control, resulting in legal actions like wage garnishments. Understanding these consequences underscores the importance of taking proactive steps to manage and eliminate debt.
Before we get into the meat of the show, let me remind you of this week’s special FREE Workshops:
Do finances challenge you? Most people say YES!! So HERE is the Financial Edge. It’s the education and knowledge that moves the needle. We are your Financial Team. Let’s talk about it... We believe in a 3-pronged approach:
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Today’s Real Estate News: Current Market & Mortgage Trends
Here are the top trending topics for today’s update:
(From BankRate.com) Today’s national mortgage interest rate trends:
On Wednesday, September 04, 2024, the current average 30-year fixed mortgage interest rate is 6.44%, down 2 basis points from a week ago. For homeowners looking to refinance, the national interest rate for a 30-year fixed refinance is also 6.44%, holding steady from last week. Meanwhile, the average 15-year refinance interest rate is 5.91%, falling 4 basis points over the last week. For now, the consensus is that mortgage rates will ease down in 2024.
What does this mean for you? It’s a clear signal that while rates remain relatively high compared to previous years, there is an expectation of further reductions, possibly as early as the next Federal Reserve meeting. If you’re looking to refinance, now might be a good time to explore your options, especially if you want to turn that liability into an asset by reducing your interest rates.
Let’s see our first headline: Mortgage demand stalls, even as interest rates moderate.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased slightly to 6.93% from 6.97%. But despite this minor dip, applications to refinance fell 2% for the week and are 9% lower than the same time last year. Even applications for mortgages to purchase homes fell by 0.2% from the previous week and are 16% lower year over year.
So why the slowdown? Homebuyers are holding out for lower mortgage rates and more listings to hit the market. But don’t let this deter you. In fact, if rates drop further, as expected, we could see an uptick in inventory as sellers look to take advantage of increased demand. The key takeaway: Stay patient but ready to act when the time is right.
Mortgage refinance demand is 94% higher than a year ago, as interest rates fall again.
Now, here’s an interesting stat—despite overall mortgage demand stalling, refinance demand has skyrocketed, up 94% from the same time last year. This is driven by people taking advantage of falling interest rates to lower their monthly payments, which frees up cash flow to invest in other areas. So if you’ve been sitting on high-interest debt, now might be a good time to refinance and reinvest those savings into a cash-flowing asset like real estate.
Text EDGE to 561-861-2366
At this point, I want to encourage all of you to get started on your path to financial independence. Text the word EDGE to 561-861-2366, and let’s help you take control of your finances, eliminate debt, and build a future of passive income through real estate.
Let’s continue with our last article: Rupert Murdoch’s Property Group Considers Bid for UK’s Rightmove.
In a bid to create a global digital real estate business, Rupert Murdoch’s REA Group is considering a takeover offer for the UK property portal Rightmove. This news sent shares of Rightmove soaring 25%. So, what does this mean for us in the U.S. real estate market?
While the acquisition has global implications, it underscores the power of digital real estate platforms to shape and influence housing markets. Whether you’re an investor or a homeowner, staying aware of how technology and large market moves affect local conditions is vital for making informed decisions. This acquisition could signal a new wave of digital integration in real estate, leading to more streamlined property management and investment opportunities worldwide.
The Power of Financial Freedom
Remember, as Shao Chun says, the idea of financial freedom can seem like a far-off dream, but with discipline, intention, and the right investments, you can achieve it. Chun built a $2 million portfolio by living below his means, investing 50% of his paycheck, and staying focused on long-term goals. The principles he lives by—setting freedom as your ultimate goal, actively working to increase income, decreasing spending, and focusing on investments rather than trading time for money—are exactly the principles we discuss here on The Real Estate Show.
Remember: It’s a stone-cold fact that Real Estate is THE best investment. Period. So get yours today!
Conclusion
Thank you for joining us on this Wednesday Midweek Mortgage & Market Report Edition of The Real Estate Show. Don’t just listen—use our show as your catalyst to start building wealth and financial independence through real estate investing.
Make sure to tune in tomorrow for our “ATM Edition – About The Money” and don’t forget to share this show with your friends and family. Together, let’s turn liabilities into assets and make 2024 the year you achieve financial freedom!
And remember, to get started today, text the word “Credit” to 561-861-2366
Also, you can listen to the entire 30 minute broadcast of any day’s edition of The Real Estate Show by clicking on the audio link on that days summary post. You can also watch the Facebook Live video at www.facebook.com/TheRealEstateShow.
Want to know more? If you are serious about real estate and paying off debt, then find out more on today and every day’s episodes and learn more about Real Estate Investing and learn HOW TO by listening to The Real Estate Show with Eric Willner , Live every weekday morning at 9 o’clock (EST) on Florida’s Money Talk Radio stations WWNN AM1470, FM 95.3 and FM 96.9. You can also hear us on the free apps: iHeart Radio and TuneIn. Recorded Rebroadcasts are available 24/7 on Facebook. Please share this and our Facebook updates.
Eric Willner is the Host and Founder of The Real Estate Show, an informative show about how to buy, own, and improve real estate the right way, on autopilot. - The Automatic Landlord way. (AutomaticLandlord.com) You can reach Eric Willner at Eric@Ericwillner.com or 888-595-7779.
Also listen to the rebroadcasts on demand on Facebook.com/TheRealEstateShow
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