(888) 292-1099 info@moneymastery.com

Understanding the "Law of the Harvest" in Real Estate Investing

Asset accumulation and building up greater and greater cash reserves is an important part of any wealth accumulation strategy. Understanding the cycle of wealth accumulation through the “Law of the Harvest” can more readily help you have available money that you can use to invest in real estate ventures that will help you make even more money.  In this post I want to take a closer look at the “Law of the Harvest”:
1. A landlord purchases a duplex and charges rent.  He pays the mortgage and improves the duplex to keep it up (represented by the “create surplus & invest” box below).
2. He manages his property wisely, improves the property where needed, and increases rents when appropriate (as represented by the “make a profit” box below).
3. When the real estate market is in a prime position to help him meet his goal for achieving a specified return from his real estate holdings, I’ll say 10% in this example, the property owner determines that it’s a good time to harvest some of his  “crop.”  The landlord sells the duplex (represented by the “harvest money” box below).
4. Cash is now in the property owner’s hand. He can use some of that money to reinvest in another real estate venture (subject to real estate rules) to make more, but he should also harvest some of that money (say 10% to 15% depending on his particular situation) by locking it down in some secure place, such as debt-free real estate, or FDIC-insured savings, so that all of his income is not being cycled back into his business ventures (represented by the “protect money” box).

Real Estate Investing Circle
The important thing to remember in this example is that the property owner does not defer protecting a portion of his harvest until “retirement” but rather engages in protecting and locking down chunks of it all along the way. If he continues to wait to spin off a certain amount to protect, he risks losing it all.
Remember, don’t wait to spin off assets — make a plan to harvest and protect them along the way.

For more information, contact me: alan@moneymastery.com, 801-292-1099.

Get in touch with Money Mastery®

Money Mastery Logo
Connect with us.

Our support Hotline is available 24 hours a day: (888) 292-1099

Refund/Cancellation Policy:

All subscription purchases made can be cancelled anytime, directly within your subscription, by going to MY ACCOUNT and clicking on Do Not Renew. Subscription purchases are paid in advance. Purchases made for books and other items that are not monthly, or annual subscriptions, can be cancelled in writing within 30 days of purchase for a full refund.

Payment Methods