Debt-Free Millionaire

Business101: Profits are the Space between Revenue and Expenses - (W6:D2) Debt Free Millionaire

Simplified Explanation: Owning a business gives you more freedom, more time flexibility, more satisfaction, and more opportunities to make a difference in the world. It also brings more frustrations, more hours to work, more risk, and more stress. It is not for everyone. But, when your company is making more money than you are spending to run it, you are making a profit, which is a great motivator for business owners.
Real Life: Not everyone wants to own a business. It is incredibly stressful at times, and takes extra work; but those who do it can make a lot more money, so much so that they may have to quit their day job. This is always a gamble for business owners/managers and entrepreneurs. 
The difference between these two is that entrepreneurs are those who start businesses or invent products. Business managers are those who take businesses that already exist, and use their skills to make money. There is a greater return on the business if you start from nothing (where an entrepreneur starts), as opposed to someone coming into an already successful business and trying to make it better, or sustaining the success it already has. The entrepreneur definitely takes on more risk, but both are essential for growth. An entrepreneur usually wants to get something started and running successfully, and then pass it off to someone else to manage. This allows them to start something else they are passionate about. They create exit strategies that allow them to exit with a good amount of money, or hand it over to someone to manage, while collecting a paycheck over a long period of time. 
For example, say I own John’s Super Conductors. I know I can get to $1,000,000 worth of sales each year. When I hit that number, I have two options, 1) I sell the company for $8-15 million dollars; or 2) I hand it over to a manager that can do better than I can at this level of revenue, and I collect $500,000 a year for the next 10-20 years, as a constant paycheck. Either way, you make your money. Some would say, why keep it and worry about it?
Read about this in future Debt Free Millionaire Business books.
As stated before, a business is much more than selling a product or providing a service. Successful companies usually have staff, pay rent and utilities, deal with marketing and sales, and R&D (research and development). Information on these products could fill a library of books, so I will break it down to the most important points.
Human Resources (staff or team): Every successful company has more than just the creator. If that person is to be successful, then they need to delegate their responsibilities to people who are better at a task than they are. This is called the 80/20 rule. 20% of what you do makes 80% of your company's revenue. If you can locate your 20%, then the creator needs to do that, while his team takes care of the other 80% of what he does. Then each of them should find their 80/20 breakdown. To manage all these people, you will need a Human Resources (HR) manager, or a third-party software to take care of it. As your company grows, you will need someone to focus on just this task.
Accounting: With all these new people, you will also need to pay your employees. You can hire an accountant/bookkeeper to do this, or a third-party software company to track all your Payroll and HR needs. This is less expensive for a small company, but when you get large enough, you will need to hire people to do this, as well.
Rent and Utilities: How do you house all these people during the workday? You can buy or rent a large facility, but recently, businesses have found out how easy it is to work remotely (where everyone works from home). The difficult part in this, is to make sure they are working; the benefit is that most people will find additional time at home to complete their work, if you give them specific tasks they have to complete, and make them accountable. If you rent a facility/office, you will need to pay rent, utilities, and the cost of other goods, such as furniture. Since most people already have this at home, you can save money when employees work from home, by them using their own furniture, and even computers to save money – though most companies want employees to use their computers because of the intellectual property that is stored on them.
Marketing: Now, most times, your product won’t sell itself. Instead, you need to tell people about it. Most of the time, this takes money - to buy advertising or attend conventions. Check out www.debt-freemillionaire.com/freemarketing/ to learn how to save money on marketing, starting off. Most people believe social media is the best way to get your name out, but most of the time, it is also the most expensive, with very little return for a long time. Instead, emails are free and a direct connection between you and your customer. Check out the link above. Other options you have are tv/radio advertising, billboards, or print marketing. The greatest marketing tool you can acquire is ‘word of mouth’(WOM). WOM is the greatest advertising you can find, and starts with making a great product and then selling it. When someone buys this product and they like it, they won’t stop telling people about it. If you can create a campaign where people are making these contacts for you, and recommending your product, then you will pay nothing for hundreds, thousands, or even millions of sales. Marketing is not just advertising; check your reviews, as well. People these days base their purchases (products or services) off the suggestions of others.
Sales: Beyond marketing, sales are essential. This is where you are directly contacting the customer, and sharing why buying your product or service is so important. You can do this yourself, or hire professionals who have a network of people who would like to sell the product. Again, if you don’t find your 20% effectiveness in sales, then you need to give that task to someone else. Your company cannot thrive without revenue from sales. Sales people should be tasked with contacting customers directly, or searching out the right people to sell to. They need to be excited about your product, and open to selling it to everyone and anyone. If they hesitate about normal sales tasks, it may be time to find someone else.
Research and Development (R&D): You may have a product already, but could it be better? You may have a product already, but could someone duplicate or make it better, before you do? For this reason, your company should always be innovating, and advancing - whether it’s improving your product, service, or even your business. Money that you spend in R&D is an investment into the company’s future (if you have the money to spend on it already, without taking out debt). This was one of my past mistakes: going into debt to find out the product doesn’t sell, and it was not that popular of an idea. 
Products: You have a product to sell. What if your competition starts selling it for less? Do you lower prices? Think of diversifying within yours, or a similar niche. If you are selling maps, why not educational books? Since your customers are close enough, you may want to find something else to sell that your customers are looking for. 
Services: If you do not sell products, then you are most likely selling a service. Is it the same service as your competition? If so, why would a customer use your company? These two are essential questions. Survey your customers and see what they really want in your service. Don’t just assume you know. Send a survey out to your customers and see how you can make your service better, or how you could get them to refer you to their friends. If you find these two answers, you will outsell your opponent every time, because you are addressing the needs and wants of your customers, and not just following the example of what was done in the past.
Multiple Streams of Income: Every strong river is fed by many smaller streams; it is the same with successful income. Where does your money come from? Is it from one activity you do, or many? Do you have a sales season, and if so, what do you do during the offseason? The most important way to make a company secure and successful is to find as many income sources as possible to feed your business river. If your streams dry up, so does your company. You can have conventions, online sales, work with retailers, use software as a service (SAAS), offer subscriptions or memberships, and so much more. Find each way you can make money, and see if it is worth putting the time and money into it, to sustain that activity.

You are Only Obligated to Pay the Minimal Amount of Taxes - (W6:D1) Debt Free Millionaire Podcast

Simplified Explanation: The government needs revenue to run itself and govern the country, and decided that income tax was the best way to accomplish this. They are demanding you pay your share of the expense of the government’s existence, by giving them a percentage of your income in each paycheck, and at the end of the year, whether you work full-time, part-time, or in a gig job.
Real Life: How does the government figure out how much you owe? It all depends on your earnings, minus your deductions. Earnings are how much you make from taxable income (salary, side jobs, investments, etc.).
Deductions are things you can write off in your taxes that will be forgiven, if spent a certain way (donations, volunteering, having kids, energy efficient purchases). To figure this amount, you have a form that is given to you by your employer, called the W-4 (provided by the IRS). This will calculate how much you will likely owe the government at the end of the year and your employer will withhold that amount, divided over 12 months, and send it to the IRS each quarter (every three months). In addition to federal taxes, you will owe your state income tax, as well, but this comes out as a flat percentage of what you make (in most states). On the W-4, you will count your potential deductions, including dependents (children), if you are the head of the household, and other deductions the government allows.
IRS Form W-2: At the end of the year your employer will send you a copy of your W-2, which will report to the IRS how much you made, and how much was withheld from your paycheck and sent to the IRS each quarter. This is not the end of reporting your taxes. Everyone in America, whose income exceeds their standard deduction (2020: $12,400), must pay taxes.
IRS Form 1040: You will report your income and W-2 information on a Form 1040 Individual Income Tax Form. Here it will ask you for your personal information, so they can look you up, how many dependents (children) you have, how much you made, and how much you owe them, or they owe you. To decrease how much you owe them and possibly receive a return of what you overpaid, you want to add special deductions, if you have them. If you did not donate much, or make government backed purchases (investments, insurance, etc.) then you will simply take the standardized deduction and decrease your income by that amount, now owing the government less than was originally estimated. For this reason, money would be returned. This money is called a Tax Refund. If you get one, it means you overpaid the government when they originally withdrew it from your paycheck. If this is the case, talk to your HR (Human Resources) manager for your employer, and see if you can adjust your W-4.

How the Economy is Killing Opportunity and How We Benefit - BONUS - Debt Free Millionaire

Here are the articles that were mentioned during the podcast and the source of the graphs we used: Economic News Release Schedule: https://www.marketwatch.com/economy-politics/calendar Leading Indicator News: https://www.conference-board.org/topics/us-leading-indicators DXY News: https://www.nasdaq.com/articles/us-dollar-dxy-index-news:-strengthens-amid-treasury-yields-surge Existing Home Sales: https://www.bloomberg.com/news/articles/2024-04-18/us-existing-home-sales-decline-as-rates-keep-buyers-sidelined?embedded-checkout=true Average Sales Price of Homes: https://fred.stlouisfed.org/series/ASPUS Home Sales Clobbered: https://wolfstreet.com/2024/04/18/home-sales-clobbered-by-mortgage-rates-most-price-reductions-for-any-march-in-years-new-listings-active-listings-surge/ Commercial Real Estate Defaults: https://www.kansascityfed.org/research/economic-bulletin/banks-commercial-real-estate-risks-are-uneven/ Initial Jobless Claims: https://talkmarkets.com/content/initial-jobless-claims-thursday-april-18?post=441485 DXY Trends: https://blog.techcharts.net/index.php/2023/09/03/u-s-dollar-index-10/ DXY vs Inflation: https://www.isabelnet.com/u-s-dollar-dxy-index-and-cpi-inflation-u-s-less-dm-ex-u-s/ Inflation vs Real Wage Growth: https://www.statista.com/chart/27610/inflation-and-wage-growth-in-the-united-states/ 

Buying a New Car vs. Used Car vs Public Transportation - (W5:D4) Debt Free Millionaire Podcast

NEW DEBT (TRANSPORTATION) (W5:D4)
First, before you buy a car, think about where you live. Do you need to buy a car, or would public transportation be more economical for you, at this time? Not everyone needs a car. Is your business far away from the subway? Most people in New York either walk or take the train to work each day. Is it crammed and an inconvenience? Yes, but a car costs at least a few thousand dollars, and places like New York have taxes on your vehicles and high parking spot rates. It’s not worth having a car for 95% of New Yorkers, and many large cities in the United States. Now, if your work is far enough away from public transportation, or you have special reasons to get a car, then only get what you need in a car. 
No one needs a new car off the lot, though people get into debt to buy them everyday. Most new cars lose about $5,000 in value the moment they drive off the car lot (and when the return policy does not apply anymore). Then they drive them until the next newer car, with fancier features, comes out, and they buy those, putting their slightly used cars back on the market. Those slightly used cars lost over half their value in the two years that person drove them. Now, they are just right for you to buy. After they lose their greatest depreciation, driving off the Car Dealership Lot, they are priced right where they should be. Give them a few more years, and they are right where a person in debt should be looking. A car for someone in debt, needs only to cost $1,000-3,000. Unless there is something specific that you need, you can find one for very little investment. 
Prices are different if you buy them at a new car dealer, used car dealer, or private individual (for sale by owner). 
New car dealers use the offer to trade in the old car to entice people to buy a new car for less. They take those cars and either sell them at auction to a used car dealer or, if they are in good condition, sell them on their lot. When they buy them directly from a seller, they pay or trade it for $2,000-3,000 less than if you were to put in the effort and sell it to the next user. Then, they take that car and sell it for $2,000 more than you would have paid for it from a private individual.
Now, how do you find out how much you can sell it for? Kelly Blue Book or www.kbb.com. This site takes the age and condition of the car and prices according to the market around them. If you are selling in San Francisco, CA, your car will most likely go for more than Kansas City, MO. It takes into consideration the make, model, condition, mileage, and options found in your car, and allows not only the car dealerships to see the price, but all customers. They want to be an open book, as to the true price of a car. They break the value down into three categories: Buying from a private seller (largest return); buying from a dealership (medium pricing); and trade-in value (least amount). 
Sports Car - No one needs a sports car for everyday driving. They don’t handle well on the road, they carry less, and can be expensive to fix. At the same time, I wouldn’t give up a inexpensive used one, if you find it. 
European made - These are the most expensive cars you can buy, and also cost the most to repair (and require frequent repairs). European cars are normally sold for top dollar, based on the pricing in Europe - including all their taxes, and then when you need to repair them, their parts are mostly imported from Europe, and need a European car specialist to repair them. Either way, they are very expensive to own. These days, wherever a car sells the most, that is usually where it is built. Volkswagen has moved its production to the United States, which has lowered its high prices, though some of its parts are still imported. BMW is also building in the U.S., but their price tag has never been known for being economical.
American cars, on the other hand, are more affordable in price, and more reliable in repairs. They are considered the middle ground between sporty, appearance, and reliability. An American made car is always a safe bet and moderately expensive to fix. The top brands include Ford, GM, Chevrolet, Jeep, and Oldsmobile (though many of their cars have been exported to Canada, Mexico, and even Europe, so their price comparably has gone up faster with some models). 
Asian cars - On the other hand, Asian cars are the least expensive, yet the longest lasting cars, on average. Both Toyota, Honda, and Subaru are brands that are known to last a long time. Their cars and parts are all made here in America, and so are priced for the United States. In 2021, Toyota now tops GM as the number one maker in the United States and yet it originated in Japan.
So, when you are buying a car:
Don’t buy new, you lose $5,000 driving it off the lot.
Don’t buy a sports car or European; they’re normally gas guzzlers and can be expensive to fix. Right now with fuel prices high, these are not a good idea.
Buy used, after researching them on Kelly Blue Book, for price and reliability.
Buy a car that will last you a long time; when you are debt free, then save up and buy your dream car.

How to Make $100,000 from your first home and everyone afterwards - (W5:D3) Debt Free Millionaire Podcast

Being Intentional: If you are intentional, you can make $100,000 off the next house you own. Here are some tips when buying a home.
Buy in an area that is just about to take off. We bought our fourth house in an area that, unbeknownst to us, was about to take off. The city had just passed a bill that paid the business storefront owners to renovate their building exteriors, and had new construction. A large box store complex was built less than a mile outside our residential area, and a new movie theater moved in. Our house doubled in price in 5 years. 
If you are handy with a hammer, try buying a distressed home, one that someone moved out of and may have not kept clean, or taken good care of. Only buy a house with good bones, that mostly needs cosmetic repairs. If you put in the sweat equity, you may get much more out of it, then buying a house for full price. I’ve made over $100,000 on the last two houses I’ve lived in, after living in each for 5 years.
Buy small and grow into larger homes. Our first and second houses taught us a lot. We made money on the first, and lost money on the second. The third and fourth house is where we really learned. We bought a distressed home, in Alaska, for $180,000, yet it was worth $280,000 after some repairs and cosmetic work. We took the $100,000 and bought another foreclosure in Missouri, for $98,000 and our house was paid off. We sold the fourth house for $210,000, and bought another foreclosure, worth $300,000, with cash. We will never get another mortgage.
Don’t buy at peak market – The housing market goes up and down in value. If you buy a house at top value, just before the price adjusts, you are looking at owning a house, but owing more than it is worth. I have done that before. Watch the housing market. The rule of thumb is, take the last recession and add 10 years to it. If you are near, or after, 10 years from the last recession, do not buy. Rent for the next year or two, until the next price adjustment, and then buy. Housing prices always go up over time, and come down during a recession. Before President Bush, all recessions were within 8 years; his policies pushed it to 10 years. Trump’s policies now pushed it to 12 years. I predict President Biden will have a recession in the next 2 years, partially in part because of his policies, and partially because of the time that has elapsed since the last recession. We are due for a correction. Some would say that the COVID “recession” was our next recession, but as you can see from prices, there was no adjustment (minus a quick one, due to the stock market). Then it rebounded back to where it was before and kept going; so, no real recession happened.
Buy a house with newer appliances – Most of the time, you can find houses with newer appliances, within 10 years of age, but know that old appliances may be more reliable. Buy a house with that, or negotiate the price during inspections, and ask them to drop it $10,000 for a furnace, or $1,000 for a hot water heater, and change it out yourself. If you know what you are doing, you can save a pretty penny. Check out our Debt-Free Millionaire: Home Ownership book, before you buy a house.
Before you get a mortgage, save enough for a down payment. If you want a $100,000 home, save 20% ($20,000 - did you use the decimal trick I taught you, here?). If you want a $500,000 house, save $100,000. If you do not, you will pay much more. When you owe the bank more than 80% of the home’s value, you have to pay PMI – Private Mortgage Insurance - and that could cost you up to $100 a month, or more. That is basically free money to the bank, because you are at risk to not pay on your mortgage and that money will help make up the difference if you don’t pay. There are two ways out of it: 1) pay the 20% down payment at time of purchase; or 2) bring the value of the house up. Those are your two options. As soon as your house value is higher than 80% of the mortgage, call your banker and let them know you want to remove the PMI; they will not do this unless you tell them. They will call for a new home appraisal to find out if your house is now worth 20% more than your mortgage.
The greatest way to make your house an investment, instead of a savings account, is to pay off your mortgage. That’s right - either way, you will need to pay it back within 30 years, or sell it. Paying it off relieves stress, and creates an investment that will always be worth something.
If you want to pay off your house quicker, there are multiple ways to do so, including:
Pay your mortgage faster – If you pay more than is asked of you, by your mortgage lender, you will pay off the house faster. Try bi-weekly mortgage payments; when you get paid, you pay your mortgage. Each time you pay, it lowers how much you owe. Since interest is accumulated daily, when the monthly mortgage is counted, the amount you owe in interest is also less. The future interest payment decreases, because it’s less interest in the loan. You can also try paying an extra payment each quarter.  Just this will cut a 30-year mortgage down by 11 years, saving you more than $60,000. If you have a 30-year loan and the interest rates are lower, refinance it to a 15-year loan. If the interest rates are equal or higher than your current one, act like you have a 15-year mortgage, and pay that amount each month. If you pay like a 15-year loan, you will only pay on a house for 15 years. 
Buy a distressed house – This is my specialty. I flip houses on the side. Before you think you can do this, you need either of these two things: 1) the ability to swing a hammer, and experience doing the work; and 2) a good, trustworthy contractor who won’t charge you an arm and a leg. You need to know what you are doing, and if the house you are buying is a good deal, if you do the work. Check out the book Debt Free Flipper, and learn what you need to do to find the right opportunity.
Buy at the bottom of the market and then sell at the peaks - The easiest way to make a return is by playing the market, but be careful; if the market drops while you still own a house, rent it out until the market returns, and then sell it after it increases above the purchase price. I said it was easy, but that is only in the sense of what to do; you do not control the market and...

Rent or Buy a House? Investment or Money Pit? What is the Truth? - (W5:D2) Debt Free Millionaire Podcast

The American dream has always been to own a house; but is it the wisest investment? The way most people buy a home is like a Savings Account, and you pay very large fees. Some financial gurus will tell you it’s a bad investment, and you would be better off renting a house. Consider this though, when you buy a house, let’s say for $200,000, you will most likely get a loan for that entire amount, with a 3.94% interest rate. You will pay $1,419 each month (Principle + Interest $687, Homeowner’s Insurance $104, PMI $140, Property Tax & Fees $225, HOA $0). Read more at www.debt-freemillionaire.com/ homeownership/. Over the entire 30 years of the loan, you will pay over $510,840 for the mortgage, and all fees attached. When you sell the house, you will most likely sell it for $384,115 given normal inflation. During that time, you will have replaced all the normal pieces of the house, including siding, windows, furnace, AC, hot water heater, and any other damages, and also will have insured it. In the end, you will pay more for the house than you would have saved. Let’s make this easier to read:
Renting vs. Buying a House ($200,000 house)
 
Own a Home
Rent
Closing Costs:
$2000 Closing Costs
$1,000 Deposit
Mortgage vs Rent
$1,315/month
$1,315/month
Homeowners/Renter’s Insurance
$104/month
$75/month
Replace parts of the house
Min. $50,000 over 30 years
$0, Owner pays
Total Spent over 30 years
$562,840
$501,400
Selling the House
After Inflation, house is worth
$384, 115
$0
Lost Owning vs Renting (Spent-Worth)
$-178,000
$-501,400
Difference in Owning vs Renting
$+323,400
 
Now this assumes what the average American would do when buying a house. Later, I will go through ways you can save money on your home purchases, so you lose $0 when you sell your house. Before we do that, let me explain renting vs. buying a home.
Here are things to consider when buying or renting:
Number of Rooms – How many rooms do you need? Are you single? Do you need more than a studio apartment? Are you married, with no kids? Do you need more than two bedrooms? Are you married with kids? Do your kids need their own room? There are some occasions, but nearly no child needs a bedroom of their own, unless they are the odd number child. When being intentional, you do not need a very large house, unless you find the perfect deal. It is nice, though, to have a spare bedroom for guests, or to use as an office.
Square Footage – Everyone wants the biggest house, but do you need it? Will it hurt you financially? One way to look at it is the price per square foot. Take the price of the house and divide it by the square footage of the house. Most houses in Missouri are $142 per square foot, while California is much higher, at about $286 a square foot for a 1400 sq. ft. house. Buy what you need, or look for a great deal.
Backyard – Do you have kids? Will you or your kids enjoy the backyard? Part of the expense of owning a house is the upkeep around the house. Do you have someone to take care of it? Do you enjoy mowing the lawn? Consider this when it comes to buying. Do you need a yard, or will a condo (much like an apartment, with no land) suffice?
Bathrooms – Do you have enough bathrooms for all the people living there? Do you have certain people in your family that will take the bathroom for long periods of time, especially when you are on a schedule? Does this place have a master bathroom for you and your spouse, so your kids don’t have to use it? These are all things to consider. Only buy a house with enough bathrooms to provide for your family. One is a necessity while any more is more of convenience and increases the price.
Age of House/Apartment – Will it need a lot of upkeep, because of its age? Buying an older house is much more expensive than the purchase price. It also means you will pay for upkeep, since its functions and features will be failing over time.
Rent or Buy – When you are just leaving your family’s home, you do not take that level of house with you. You do not even have to own a house to get started. Your parents lived their whole life to get the good sized home that you just left. What do you need? If you are single, then you just need a place to lay your head, like a studio apartment (where you technically have two rooms: your bathroom and everything else - kitchen included). If you have a small income and no credit, then you will want to start renting, first. As your income increases, you can get into a house.
At the same time, right now, you will pay more in rent than you will pay on a mortgage, with the interest rates so low. You can get into a house for $800 a month, while you would be paying $1,000-1,200 a month in rent. As the interest rates increase, though, so will monthly payments when purchasing  a house. If you close the account the payments will stay the same.
A $100,000 home, at a 3% interest rate, will cost $709 a month, or $255,240 over the life of the loan.
A $100,000 home at 8% interest, will cost $1,021 a month, or $367,560 over the life of the loan.
Taking that into mind, right now is a smart time to buy, if/when you are ready. As interest rates increase, you will want to pay cash or rent, because of the increase in monthly payments. At this point, rent and mortgage expenses equalize. But your expenses don’t end with mortgage payments, when you own a house. Repairs are expensive; you may have to add in those expenses and stresses on top of the mortgage payment. 
The way the average American buys a house, shows that we are not the greatest at investments. That is, unless you are intentional. We mentioned that repairs can be expensive. These are some of the repairs that are necessary, may happen while you live there, and you will need to pay for (which is also why we will teach you to set up a rainy-day fund). Here is the average price for specific repairs:
You pay a mortgage: $800
Your furnace goes out: $5,500-$20,000
Your hot water heater goes out: $1,000-$3,000
Your AC unit goes out: $3,200-$10,000
Your plumbing breaks: $1,200
Cosmetic damages: $1,000-$5,000
Roof replacement: $10,000-$40,000 
So, your house could be a money pit, and you could spend a lot of money on its upkeep. Keep this in mind before purchasing a house, and be sure to get thorough inspections!

How to Become a Debt Free Millionaire Just By Buying Your Own Homes - (W5:D1) Debt Free Millionaire Podcast

NEW DEBT (HOME OWNERSHIP) (W5:D1)
Let's try some vocabulary today. Do you know these words?
Before we teach you about homeownership, let’s talk about a few vocabulary words having to do with real estate, both for personal and commercial use:
Closing – This is the day that you sign the contract to buy the house, the previous owners are paid by the lender, and around that date, you will receive the keys. 
Commission – When you close on your house, your agent receives a percentage of the asking price (1-6%). They then share that amount with the other agent.
DOM - Days on Market – This is a calculation of how many days a house was on the market, starting the day they listed it, until the day the contract is signed.
Deed – When you close on a house, and you were the seller, this document is passed over to the new owners, giving them ownership, free and clear of anyone else.
Disclosures – When you list your house for sale, you are legally obligated to report any issues you have had with the house. Potential buyers get to see it before making an offer.
Distressed – When a house is in disrepair, or the previous owners were not able to pay the mortgage, it is given this distinction; these normally sell for less than their value.
Due Diligence – This is your obligation, when you buy a house, to do your due diligence by looking at and inspecting everything, with the help of professionals. The seller also promises to complete their due diligence, by disclosing issues with the house.  
Easement - When you own a piece of property, you should know that, although you own up to the property line, government and semi-government organizations have access to a portion of the land to make modifications. This is an easement.
Foreclosed – When someone buys a house, owes money on it, and doesn’t pay, the owner is removed and the house is given to the lender, who will try to sell it. While sad for those who lost their home, it is an opportunity to get a less expensive home. It may be distressed.
FSBO (For Sale By Owner) – Normally, a seller will use a professional real estate agent to handle the transaction. Some people try to sell the house on their own, to remove commission. The owner has the responsibility of doing all the paperwork on their own, though.
Investment Property – When you make money by selling or renting your properties, the real estate is considered an investment, and you will be taxed on that income.
Landscaping – Outside your house, all flowers, plants, and materials that organize the exterior are collectively called landscaping. It is made to beautify and increase value.
Lease – When you do not own a house, but instead pay a monthly fee to stay in it, this is considered a lease. You sign a contract for a specific time, and the owner allows you to live in it, until the contract is complete.
Listings – When an agent promotes your house, the first thing they do is to list it on the MLS, which allows all agents in the area to set up appointments to see it.
MLS – Multi-Listing Service – This is a program online that allows real estate agents to share information about houses they have for sale, and the commission offered. 
Offer / Counter-Offer – When you sign a contract to buy a house, you offer an amount of money. The owner will accept or counter with a new offer; you can then counter that counter-offer with a new one of your own.
Purchase – This is the process of selling or buying a home. When it is all done - all the contracts are signed and funds transferred - it is considered purchased, or sold.
Remodel/Renovate – When you own a house, or when you buy a distressed house and it needs work, a remodel or renovation is when you or your contractor put in the effort to fix that house. It’s basically when you fix up a house.
Utilities – These are what make the house work properly, as a dwelling for you. These include power (electricity), gas, water, sewer, and internet. You pay for these each month.
Zoning – A city is broken into certain areas: housing areas, retail, industrial, agricultural, and mixed use. These are set up by the government to keep certain real estate in specific areas, for effectiveness and beauty. 

BONUS EPISODE: Your Government is Lying to You About Employment Numbers - (W4) Debt Free Millionaire Podcast

Because graphs are impossible to see on a podcast, also check out our YouTube channel with Xogos Gaming: https://www.youtube.com/watch?v=Lbv7aCOkba4 Get these numbers from Zero Hedge ( https://www.zerohedge.com/political/millions-new-illegal-immigrants-mask-true-state-us-economy) For the last few years, the headline employment figure has been impressive. The country has recovered the lost jobs from the government-imposed shutdowns during the pandemic and added a few million more, despite a climate of high inflation and rising interest rates.
In 2023, the economy added approximately 3 million new positions. To kick off 2024, more than 800,000 new jobs have been added.
The labor market data is critical as it helps determine the Federal Reserve’s interest rate policy.
Federal Reserve chairman Jerome Powell said on March 20 that the central bank is monitoring the labor market “very carefully” and isn’t observing any “cracks.”
“We follow all the possible stories that are out there about there being cracks, but the overall picture, really, is a strong labor market,” he noted. “Things are returning more to their state in 2019.”
However, a closer look at the household survey of the employment report reveals a more gloomy picture. Employment for native-born Americans has been in decline over the past four years. This means that all of the job gains have gone to foreign-born workers, including both legal and illegal immigrants.
According to the Bureau of Labor Statistics (BLS), the number of immigrants—legal and illegal—working in the United States grew by 3.4 million between February 2020, shortly before the onset of COVID-19, and February 2024. The number of U.S.-born workers, however, declined by 78,000 during the same period.
In addition, during the Biden administration, there have been approximately twice as many illegal immigrants as legal immigrants entering the country, according to a study by the Brookings Institution.
“That’s a big problem,” says economist Stephen Moore.
“What we’re interested in is how the economy is working for American citizens. So, we’re distorting the jobs market with all of the illegal immigrants,” he told The Epoch Times....Read More at (https://www.zerohedge.com/political/millions-new-illegal-immigrants-mask-true-state-us-economy)