How to Get Rich Using Other People's Money - Jaren Sustar

About this Video

• Video Title: How to Get Rich Using Other People's Money - Jaren Sustar
• Channel: The Rich Dad Channel
• Speakers: Jaren Sustar
• Duration: 00:28:18

Introduction

This video explains how to build real estate wealth using other people's money (OPM). Jaren Sustar details strategies for leveraging OPM, including private and hard money lenders, and the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat). He emphasizes the six pillars of real estate wealth: leverage, forced appreciation, traditional appreciation, cash flow, debt pay-down, and tax benefits.

Key Takeaways

1. Six Pillars of Real Estate Wealth: Leverage (using OPM), forced appreciation (rehabbing properties), traditional appreciation (long-term value increase), cash flow (positive rental income), debt pay-down (tenants paying off mortgages), and tax benefits (depreciation, etc.). These pillars, when combined, create a path to financial freedom.
2. Using Other People's Money (OPM): Three main ways to use OPM: private lenders (individuals in your network), hard money lenders (companies specializing in short-term loans), and institutional lenders (banks).
3. BRRRR Method: A strategy for acquiring rental properties using OPM. This involves buying a distressed property, rehabbing it, renting it out, refinancing to pay off the initial loan, and repeating the process to scale your portfolio.
4. Mindset Shift: Instead of viewing lenders as sources of charity, position yourself as a businessperson offering a profitable investment opportunity.
5. Financial Freedom: The ultimate goal is achieving financial freedom, which encompasses both time and financial independence, allowing for a better quality of life beyond just material possessions.