Net Worth is Important. · Dion Talk Financial Freedom

Net Worth is Important.

I know, I know, it's an unpopular position in this community, but net worth has to be a focus as your build your portfolio. You can build a portfolio that in 10 years is worth the same as it is now, or you can build a portfolio that in ten years will be worth 10x what it is now. Even though you can't eat equity, believe me, I know this feeling all to well, that doesn't make it unimportant.

I recently did a massive cash-out refinance that is going to allow me the cash to buy a portfolio worth over 1 million, because I had net worth. A large amount of assets also creates other opportunities not available to those without. For instance, if you have 1 property, you are only buying materials on repairs for 1 property. However, if you have 50 properties, you are buying materials for repairs on 50 properties. When you buy more materials, you get treated differently as a buyer. You get more and larger discounts, you can buy in volume, you get rebates, and you can hire differently. In addition, banks treat you differently; you get access to capital more easily, better terms, etc.

The only way you can get these benefits is by owning a larger amount of properties. Larger amounts should ALWAYS translate to larger net worth - IF - you are doing it correctly. Don't let people tell you net worth doesn't matter.

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Net Worth is Important.