Millions of borrowers are drowned in unmanageable debt from student loans, which can follow them for years, stifle their financial development, and keep them from amassing wealth. Real estate, however, has certain benefits that no other investment class can equal, and some people find relief there.
Real estate might be an exclusive solution for student debt
For instance, investment in real estate can produce passive income while increasing ownership equity and give appreciating value as a means of accumulating wealth over the long term. Real estate might be an exclusive solution for student debt because of this as well as the numerous tax benefits available only to property owners.
In an article from Go Banking Rates, real estate investors can build wealth while paying off their debts without living like broke college students, in contrast to the majority of student borrowers who give up their lives and potential for wealth production to pay off their college loans. One astute and resourceful student borrower chose that course of action, and after eliminating his debt, the assets he used as leverage continued to provide income. Now, however, he receives the funds as opposed to the bank.
Michael Chien is the CEO and marketing director of 101 Karaoke, a website that offers cloud-based song collection subscriptions in addition to high-end karaoke systems for events, parties, and business professionals. But he just runs his lucrative e-commerce business on the side.
Chien is an accomplished structural designer who works in the field of mechanical and industrial engineering. But when he earned a business management degree from St. John’s University in 2014, he was just one of tens of millions of college grads who had thousands of dollars in outstanding student loans hanging over their heads.
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Paying off student loans through real estate deals
Although Chien’s degree was valuable, it wasn’t inexpensive. He claimed that he had student loan debt of about $40,000 and would have to make monthly installments of about $400.
It was estimated that it would take me close to ten years to pay off the loan due to the lengthy commitment and interest.
Despite having a substantial student loan debt, Chien was able to borrow money for an investment property thanks to his pursuit of a high-income degree and a lucrative industry. He then made the decision to use the former as leverage to settle the latter.
Chien claimed that he set out on a mission to pay off his student loans through cunning real estate deals. Realizing the potential of real estate, he looked into investment possibilities in the developing market in New Jersey, reports Go Banking Rates.
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